Eicher Motors announces buy-back at Rs 691.68 a share cmp 226 best buy

Eicher Motors announces buy-back at Rs 691.68 a share
MUMBAI: Eicher Motors announced on Thursday that it would buy-back up to 14,08,969 fully paid-up equity shares of the face value Rs.10 each from the existing shareholders of equity shares through the Tender Offer route in accordance with Section 77A of t he Companies Act, 1956 at a price of Rs. 691.68 per share payable in cash, for an amount aggregating up to Rs. 97.46 crore. The offer size represents up to 21.28% of the aggregate of the company's total paid-up equity capital and free reserves as on March 31, 2008. The buyback would not be more than 25% of its total paid-up equity capital as provided under section 77A of the Companies Act, 1956. In terms of buy-back Regulations, under tender offer route, the promoters have right to participate in buyback. Therefore, Mitsubishi Motors Corporation is free to participate in the proposed buy-back to the extent of their shareholding. They hold 10 lak h equity shares of the company. AB Volvo, Sweden holding 8.1% of equity share capital of the company vide its letter dated November 18, 2008 has confirmed that it wouldl not participate in the proposed buyback. The buyback offer opens on March 12 and closes on March 26. At 3.25 pm on the BSE, the stock was quoted at Rs 226, down Rs 11 from yesterday’s close of Rs 237.30