Flextronics International has priced its open offer for 20 per cent of the paid-up equity capital of Hughes Software Systems (HSS) at Rs 548 a share.
The offer price to the public shareholders is a rupee higher than what Flextronics paid for a share of face value of Rs 5 for acquiring 54.95 per cent stake from the promoters of HSS, Hughes Network Systems (HNS).
Flextronics paid a total of Rs 1021.1 crore (Rs 10.21 billion) for acquiring HSS from HNS, which is a fully-owned subsidiary of Rupert Murdoch-controlled DirectTV.
As per the guidelines of the Securities and Exchange Board of India, after the takeover of HSS, Flextronics had to come out with an offer to the public for acquiring 20 per cent stake amounting to 67,93,810 shares.
For the open offer, Flextronics will have to spend Rs 372.3 crore (Rs 3.72 billion).
The price Flextronics has offered to pay per share for the open offer is higher than average of weekly high and low of the closing prices of the shares of HSS during the 26 weeks preceding the offer. It is also higher than the average of daily high and low of the shares of HSS during the two weeks preceding the date of offer.
In the first case, the price comes out to be Rs 547,93 while in the second case it works out to be Rs 511.16.
The open offer will open on July 30 and close on August 30. The last date for revising the offer price and number of shares is August 19.
After the announcement of open offer price, HSS shares opened at Rs 510 on the BSE as against Friday's close of Rs 516.95 and was last trading at Rs 514.
