The acquisition is of the holding company and not the listed entity I suppose. In that case, it may not be mandatory to make an open offer in India, I suppose.
Accelya website shows the group revenue of $110 mn or Rs 550 cr ( probably ~320 cr from India + global ops)
On what basis are your predicting that USD will come down to 55 Rs by next year specially CAD increasing briskly?
The ET Now news item giving details
An interview bit dated but giving details abt the company in simple Hindi language which helps in better understanding of the company .
Hi Nadakarni ,
If that news is right i.e… any company acquire Accelya holdings world , then they must acquire promoter holdings of Accelya kale solutions India . As per SEBI take over rules it will be deemed as indirect acquisition will automatically triggers open offer to minority share holders . As promoters holds 74 percent stake they must announce mandatory open offer. There are certain regulations that stipulates the offer price . For ex they will consider a. acquirers offer price b. 26 weeks average traded price as on date of public announcement b.last two weeks average traded price . Final offer price will be highest among three .They should announce minimum 26 percent open offer . So ultimately it will be a case of delisting .
But as a matter of fact this open offer should announce after december 2013 only . At the time of acquisition of kale consultants , Accelya world holdings stated in the draft that they will not consider sell out option before completion of two years .
As per reports the deal size will be at 2100 crores . Public holds 36 lakh shares . So they have shell out 360 crores @ 1000 price .Considering the fundamentals i seriously doubt if any investor tender their shares at less than 1000 Rupees.
Let us see how the events will pan out .
OM, Thanks for sharing & clarifying the process of aquisition.
Just for better clarity of my thoughts, was there an open offer when accelya took over from Kales. How was that deal is different from this one (if, at all, this new deal will happen) Why was it not de-listed at that point of time.
Accelya World acquired Kale consultants in Sep 2010 .At that time they acquired promoter’s 35 percent stake @172 rupees and as per Sebi rules they announced open offer for public at same price they offered to promoters . As per SEBI rules open offer should be for minimum of 20 percent , but they announced open offer for 35 percent .At that time share is quoting at around 70-80 rupees , So open offer over subscribed and Accelya acquired 70 percent i.e… 35 percent from promoters and 35 from public .
Now already promoters are holding 74.2 percent stake and minimum open offer for public should be 26 percent .
Accelya world holdings issued acquire kale consultants in SEP 2010.As two year period got completed this statement not applicable now .
Thanks agagin OM. I didn’t know this acquisition info before. Thanks for explaining it lucidly.
I have couple more questions related to that And I don’t want to clutter this thread with this take-over info. I have already sent you a mail by message sending facility on this forum. But not sure if is works as I didn’t receive any confirmation or failure notification.
Can you Please let us know if sending message thing works…?
I would request you to go ahead and ask your questions in this thread itself.
It’s a very interesting discussion and am very glad Om is guiding us with his knowledge.
I think others too would want this
I just wanted to get more clarity on what the process be for different permutation/combintions of promoter stake. e.g what the case would be if promoter holding is as low as 10-15%. Will in that case as well an open offer be required (which seemed too much for the entity acquiring the stake). But looks like thats the case. I am putting here OM’s reply as is.
Thanks to OM for clarifyibg it for all of us
"Here there are two cases , one is direct control of company i.e… take over of promoters stake and other one is indirect control . If a person / entity acquires up to 24.99 percent stake in a company then there is no question of open offer . If they acquire another one percent then they have to announce open offer for public . In first case a person / entity acquires promoters stake even its is as low as below ten then its comes under direct control and open offer of minimum 26 percent is mandatory .
For better understanding pl go through recent mangalore chamicals , kalindee stories . Pl google them . "
A very good article on Ethihad taking over strategies n how this could be indirect beneficial to Accelya which is already a partner for Ethihad.
A corporate presentation on Accelya. The company growth seems good in time to come being leader in few of it segments.Its pay per use and opex based model will be to the liking of cash strapped airlines .Its tie up with Ethiad specially will lead to larger transactions & benefit.
Thanks for the links vivek.
Etihad is one of the strong customers of Accelya. And the growth of etihad will (is) translate (ing) in to growth of accelya, esp there strategy for growth of getting minority stake in partner airlines. Some examples being air seychelles,Garuda and air berlin who are accelya customers now. Etihad is the fastet growing commercial ailines and it took just seven years to fly 7 mil passengers (2010, started operations in 2003) where as its close competitors Qatar took 12 and emirates took 18 yeas to fly same no. of passengers.
Hi Ayush, With the latest developments, what is your take on the stock. Thanks
It has been an amazing story…other cos should take inspiration from this one as to how a good corporate governance (dividend etc) can dramatically change valuations Having entered early and my cost of acquisition being low, I’m sitting tight as of now and not reading too much into takeover news…may think of some profit booking if price rises sharply from here.
name some other companies where chequers capital is having direct or indirect investments in indian stock market
I doubt if Chequers capital have made any investment other than Accelya in India. But the PE co seems quite good with their track record.
Substantial recent entries in this fast grower from reputed MFs like HSBC,Sundaram & Sahara shows increasing institutional interest in Accelya .This may only increase post hefty final dividend announcement & takeover news.
VLS Finance which already holds 3 lacs hares in the company has given an internal target of 1000 for the co.No Onus please.