The UK-based promoter of specialty chemicals company Ineos Styrolution rejected the discovered price of Rs 1,100 for its delisting and did not even provide a counteroffer to the shareholders. Accordingly, the delisting offer failed in terms of the delisting regulations. The regulations allow a promoter to walk away if the price discovered through the Reverse Book Build process is higher than the promoter’s expectations.

This one is the first Delisting offer in Indian Market after provisions of the counteroffer as per new regulations 16 (1A) of SEBI delisting regulations — notified in November 2018 by Promoter of Ineos Styrolution India Limited (the Company) under the Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009.

Proposal of the Promoter and its objective:

The promoter of the Company namely Ineos Styrolution APAC PTE. Ltd. (Singapore) holding 1,31,89,218 number of fully paid-up equity shares, approximately 75% paid-up equity shares of the Company showed the intention to acquire 43,96,407 fully paid-up equity shares representing approx. 25% of the Shares and as a result delist the company from Indian bourses.

So, considering the proposal, the post-offer promoter holding will be 100% of equity paid-up capital of the Company.

The main objectives as stated by promoter in its proposal are:

  • To increase ownership in the Company, which will provide the Acquirer with increased operational flexibility to support the Company’s business and
  • Providing exit opportunity to the public shareholders of the Company, given low liquidity of equity shares.

Sequence of events

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