Atlas Copco to increase ownership in Indian subsidiary and delist shares
March 18, 2011
Stockholm, Sweden, March 18, 2011: Atlas Copco AB has decided to acquire at least 50% of all shares it does not already own in its subsidiary Atlas Copco (India) Limited, and will apply for the delisting of its shares from Indian exchanges.
On February 18, Atlas Copco AB invited public shareholders of Atlas Copco (India) Limited to submit offers for the sale of their shares. Atlas Copco AB will initially acquire about 1.8 million shares at 2 750 Rupees per share, for a total approximately BINR 5 (MSEK 700). This will bring Atlas Copco AB’s shareholding in Atlas Copco (India) Limited to 92%, from 84% previously.
“This investment is in line with the Group’s policy of having wholly owned foreign subsidiaries, and offers us greater operational flexibility in India,” says Hans Ola Meyer, Chief Financial Officer of Atlas Copco AB.
Atlas Copco will submit an application for delisting to the Bombay Stock Exchange and the Pune Stock Exchange. Upon approval, all remaining public shareholders in Atlas Copco (India) Limited will have an option to divest their shares to Atlas Copco AB at 2 750 Rupees per share for the coming 12 months. Atlas Copco anticipates that part of the outstanding shares will be tendered during this period.
Financial market regulations in India require publicly listed companies to have a public shareholding of at least 25% by June 2013, or apply for delisting. A delisting requires the purchase of at least 50% of outstanding shares, and at least 90% ownership.
For further information please contact:
Hans Ola Meyer, Chief Financial Officer
+46 (0)8 743 8292 or +46 (0)70 588 8292
Daniel Frykholm, Media Relations Manager
+46 (0)8 743 8060 or +46 (0)70 865 8060
Atlas Copco discloses the information provided herein pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act.