Gestamp Servicios, S.L to acquire upto 37.5% stake in Automotive Stampings

Automotive Stampings & Assemblies Ltd has announced that the Board of Directors of the Company at its meeting held on February 16, 2007, inter alia, has considered the following:

1. Noting and execution as a confirming party of the Share Purchase Agreement dated February 13, 2007 ("Agreement") between Tata AutoComp Systems Ltd ("TACO"), one of the promoters of the Company and Gestamp Servicios, S.L. ("Gestamp"), a Company incorporated under the laws of Spain and having its office at Madrid, Spain. In terms of the Agreement, Gestamp will acquire upto 37.5% of the paid-up equity share capital of the Company, partly from TACO and partly from the public shareholders of the Company, at a price of Rs 94.96 per share, by way of an open offer in accordance with the provisions of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 and subsequent amendments thereto ("SEBI Takeover Regulations"). The number of equity shares that Gestamp would acquire from TACO would depend on the number of equity shares tendered by the public shareholders, in response to the open offer. It was further noted that post such acquisition, Gestamp, TACO and Tata Industries Ltd shall become the promoters of the Company.

2. Noting of the public announcement issued by Yes Bank Ltd on behalf of Gestamp ("Public Announcement") in terms of the SEBI Takeover Regulations, for acquisition of upto 19,02,261 equity shares of the Company.

3. Noting of the fad that after completion of the sale of shares as above, the Company would become a joint venture Company of TACO and Gestamp. Gestamp and TACO, inter se, shall eventually have 50:50 equity stake in the Company. Gestamp would provide necessary technology to the Company in terms of an agreement to be finalised for this purpose.

Source : Equity Bulls

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