A part of the giant conglomerate, BASF India made big news a few months when it made its open offer. The open offer was not the big news but the fact that the its parent company, which was buying back the share revised the price from Rs 274 to Rs 300 a share after the offer opened on July 9. The offer price was hiked on July 14, two weeks ahead of the closing. And this strategy worked very well for the company. As against the target of acquiring 22.31% in the opne offer, it managed to acquire 18.49% of the shares. After this offer, which closed on 14th August, promoters holding - BASF Societas Europaea and BASF Aktiengesellschaft, stands increased at 71.18% from 52.69% and the floating stock has gone down from 47.31% to 28.82%.
The company has done very well for the first quarter ended 30th June 2008, infact they can be termed as “stupendous”! QoQ, it reported a 97% rise in net sales, EBIDTA was up over 5 times, PBT was up over 8 times and so was the PAT at Rs.36.65 crore. On an equity of Rs.28.19 crore, its basic EPS currently stands at a very healthy Rs.13.
The main reason for this spurt has been the Rs.175.90 crore which came in through its Agricultural Solutions business. This division had made no contribution in Q4FY08. The company has explained that contribution from this division is seasonal, so it may or may not contribute as significantly in Q2.
In December 2007, the company opened a new plant at Mangalore to manufacture dyes for the leather industry, branded as Eukesolar. With this plant now, BASF is the numero uno when it comes to providing solutions to the entire leather industry in South Asia. It also opened the first stage of its new technical center for the leather industry in Thane near Mumbai.
Yesterday, its parent company made an open offer to acquire to acquire Ciba Holding AG, Basel, Switzerland, [CIBN], and is to soon make a public takeover offer to Ciba’s shareholders. BASF will pay CHF 50.00 in cash for each nominal share in Ciba.
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