ADI & NADIR GODREJ MAKE OPEN OFFER FOR ASTEC STAKE

MUMBAI: Adi and Nadir Godrej-led family group has made an open offer to acquire 26% from public shareholders of Astec Lifesciences as part of a settlement arrangement between them and the faction led by Jamshyd Godrej and Smita Crishna.

They are offering a price of Rs 1,070 apiece, which is at a discount to Astec's closing price of Rs 1,235 on the BSE on Thursday. At this rate, the total consideration to buy an additional 26% in Astec amounts to Rs 545 crore.

The open offer has been triggered after Adi-Nadir group's move to acquire 33% in Godrej Industries from the Jamshyd-Smita faction. Godrej Industries is the holding company of the $7-billion Godrej conglomerate, which will be split into two groups as part of the arrangement.

Godrej Industries has an indirect holding in Astec Lifesciences and the open offer has been triggered because of the indirect change in shareholding of the latter. Anamudi Real Estates, which has 0.57% stake in Godrej Industries, will also become a part of Adi-Nadir group as part of the settlement.

Rishad Naoroji, cousin of Adi, Nadir, Jamshyd and Smita, will retire from Anamudi and the Adi Godrej family will continue to be partners of the company.

Godrej Industries holds 65% in Godrej Agrovet, 24% in Godrej Consumer Products and 47% in Godrej Properties. Before the planned stake-purchase, the Adi-Nadir group's share in Godrej Industries was 31%. After completion of the transaction, their stake in Godrej Industries will increase to 65%.

Astec's stock is down 5% over the last 12 months but has gained 20% so far this year, most of which has come in the last month itself.