Description

Open offer by SBEC Systems (India) Limited and PACs to acquire up to 26% voting share capital of SBEC Sugar Limited at Rs 21.19 per equity share under SEBI (SAST) Regulations.

Summary

SBEC Systems (India) Limited (Acquirer) along with six Persons Acting in Concert (PACs) - Moderate Leasing & Capital Services Limited, A To Z Holdings Private Limited, Longwell Investment Private Limited, Jayesh Modi, Kumkum Modi, and Umesh Kumar Modi - has launched an open offer to acquire up to 1,23,90,009 fully paid-up equity shares representing 26.00% of the voting share capital of SBEC Sugar Limited at an offer price of Rs 21.19 per equity share. The offer is made pursuant to Regulation 3(2) and Regulation 4 of SEBI (SAST) Regulations, 2011.

Key Points

  • Offer to acquire up to 1,23,90,009 equity shares (26% of voting capital) of SBEC Sugar Limited
  • Offer price: Rs 21.19 per equity share (face value Rs 10)
  • Payment mode: Cash
  • Acquirer: SBEC Systems (India) Limited
  • Six PACs involved in the acquisition
  • Offer made under SEBI (SAST) Regulations 3(2) and 4
  • Not conditional upon minimum acceptance level
  • Not a competing offer
  • Target Company registered office: Loyan Malakpur, Teh: Baraut Baghpat, Uttar Pradesh 250611
  • Target Company CIN: L15421UP1991PLC019160

Regulatory Changes

Not applicable - this is a takeover offer disclosure, not a regulatory change notification.

Compliance Requirements

  • Eligible shareholders of SBEC Sugar Limited must review the Letter of Offer
  • Shareholders wishing to participate must submit Form of Acceptance-cum-Acknowledgement
  • Shareholders who have sold their shares should hand over the Letter of Offer to purchasers
  • Acquirer and PACs must comply with all SEBI (SAST) Regulations requirements
  • No statutory or other approvals required to acquire tendered shares as per the Letter of Offer

Important Dates

Date of Letter of Offer: Information to be confirmed in complete circular. Specific tendering period and settlement dates not provided in the excerpt.

Impact Assessment

For Shareholders:

  • Eligible shareholders of SBEC Sugar Limited have opportunity to tender shares at Rs 21.19 per share
  • Significant ownership change with 26% stake being acquired
  • Shareholders must decide whether to participate in the offer

For Target Company:

  • Major change in shareholding pattern expected
  • Potential change in management control depending on acceptance levels
  • Company operations may be impacted by new controlling shareholders

Market Impact:

  • High severity due to substantial acquisition of voting capital
  • Trading activity in SBEC Sugar shares likely to increase during offer period
  • Share price may be influenced by the offer price of Rs 21.19

Regulatory Significance:

  • Compliant with SEBI (SAST) Regulations for mandatory open offers
  • Sets precedent for disclosure requirements in takeover situations
  • Demonstrates regulatory framework for substantial acquisitions

Impact Justification

Major takeover offer affecting 26% of voting capital of SBEC Sugar Limited, requiring shareholder action and impacting share ownership structure significantly