Abbott India has abandoned its earlier plan of buyback of 8,07,360 fully paid equity shares. The company planed to purchase these shares from its shareholder at a price of Rs 650 per share aggregating to Rs 52 crore. However, it has not received final approval from SEBI for higher stake by its principal shareholder. At present the promoters and directors are holding 61.7 per cent of the equity capital and their holding after the buy back same stake will increased to 65.14 per cent.
Subsequent to the said filing of the draft letter of offer, the company has been advised to seek an exemption in accordance with regulation 4 of the SEBI (Substantial Acquisition of shares and Takeovers) regulations of 1997, as amended, with regard to indirect and incidental increase in the shareholding of principal shareholder of the company from 61.7 per cent to 65.1 per cent of the total paid up capital of the company consequent to the proposed buyback of the company.
The company has vide its application dated October 28, 2006 to the SEBI takeover panel sought the aforementioned exemption.
In view of the aforesaid, the proposed buyback is being been kept on hold, till receipt of the response to the said application. The timeline issued vide earlier public announcement dated October 6, 2006 stands annulled.