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2008-05-28

Religare acquires 97.76% stake in Hichens

Domestic brokerage firm Religare Capital Markets on Tuesday said it has acquired 97.76 per cent stake in Hichens Harrison & Co Plc following the acceptance of its open cash offer by the UK firm.


Hichens has accepted the offer for 1,70,06,441 shares, representing 97.76 per cent stake in the UK firm, Religare said in a fling to the Bombay Stock Exchange.


Religare Capital Markets, the wholly-owned subsidiary of Religare Enterprises Ltd (REL), had in April announced its decision to make an open offer to UK-based broking firm Hichens Harrison.


REL, the holding company for financial services businesses of the group, had offered 285 pence per share cash and valued Hichens Harrison at around 55.5 million pound.


Post acquisition, Religare is planning to delist Hichens from the London Stock Exchange’s Alternative Investment Market (AIM), the filling said.


The cancellation of the admission of Hichens shares to the AIM Market would significantly reduce the liquidity and marketability of the remaining shares in the company, it said.


Further, Religare Capital Markets International UK, an indirect wholly-owned subsidiary of Religare Capital Markets, intends to re-register the firm as a private company, it added.


Last week Religare had received approval from the UK regulatory body Financial Services Authority (FSA) for completing the acquisition of Hichens Harrison & Co Plc.


Shares of Religare were trading at Rs 396, up 0.97 per cent in the afternoon trade on the BSE.

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Disclaimer

Ours is an advisory role. The final decision and consequences based on our Information is solely yours. Moreover, in keeping with regulatory guidelines, we do not guarantee any returns on investments. Prospective investors and others are cautioned that any forward-looking statements are not predictions and may be subject to change without notice.