BASF India

BASF Buying Out Ciba

Posted by : WBuffetBlog

But Ciba's Santa Monica, Goa plant is in dumps with low capacity utilization & some units are shut. Only partly operating Anti-oxidants unit. There were no Capex plans from Ciba, Basel for the the last one year for Goa plant. Is this ankleshwar Unit the same one which Ciba acquired Diamond Dyechem? for optical brighteners.

BASF Buying Out Ciba

Posted by : WBuffetBlog

But Ciba's Santa Monica, Goa plant is in dumps with low capacity utilization & some units are shut. Only partly operating Anti-oxidants unit. There were no Capex plans from Ciba, Basel for the the last one year for Goa plant. Is this ankleshwar Unit the same one which Ciba acquired Diamond Dyechem? for optical brighteners.

BASF Buying Out Ciba

Posted by : man

Thanks Dear for your quick response.
Ciba has put up a very good plant at Ankleshwar and performing quite good as many of friends work for Ankleshwar unit.
I will hold the same and let us see what future leads to.
BASF will become quite aggressive in Pigment and Specialty products and will tough competition to Sun Toyo and Flint

BASF Buying Out Ciba

Posted by : WBuffetBlog

Manher,

Ciba's take over was long anticipated. Departure of CEO Armin Meyr at Basel, Swiss head quarters of CIBA has paved the way for this take over. He stepped down in 2007 as he retired. As long as he was in chair, he never made it happen that Ciba be taken over.

Last year I met Ciba India's chairman Mr.Billimoria on a personal visit, he forecasted uncertainities about future biz growth as that time Ciba already divested major biz division textiles effect biz to Huntsman. So that was a major indication.

Since its too early to predict whats in store for Ciba shareholders. I put here, Either BASF will merge it with itself (but chances or less)or will announce open offer for Ciba shareholders. If they give open offer, then they can transfer Ciba biz to their 100% subsidiary after delisting Ciba from exchanges. A lot depends on MF's & the Chor JM Financials. Or as per Subodh's thinking. BASF will neither merge nor give open offer to Ciba India. They will make Ciba to bleed for sometime, then when prices falls below 150 levels, they will announce open offer with the help of chor JM Financials so that open offer becomes grand success with little money.

I suggest you hold Ciba till picture becomes clear for Indian subsidiary. Wait & Watch.

Cheers!!
WBuffetBlog

BASF Buying Out Ciba

Posted by : man

I have read about complete detail about this on BASF web site, Read all the explanation from BASF and CIBA. If you compare this with last open offer from BASF in India it was just peanut in all respect.

I think it was my correct decision not to surrender a single BASF share in open offer.

I do have small qty of CIBA in mu folio and would seek your advise to Hold or Sell.

Manher

BASF Buying Out Ciba

Posted by : WBuffetBlog

From BASF Website:

Dear Shareholders, Employees and Customers of Ciba and BASF,

On September 15, 2008 we have announced our intention to submit a public takeover offer to the shareholders of Ciba Holding AG. The acquisition of Ciba will ensure that we will grow profitably in accordance with our clear and successful strategy. We are confident that the successful execution of this transaction will benefit the shareholders, customers and employees of the two companies.

We are offering CHF 50.00 in cash per share to the shareholders of Ciba. This represents an attractive premium of 32 percent on the closing price of the Ciba share on September 12, 2008 and of 60 percent on the volume-weighted average price of the shares of Ciba in the 30 days prior to the announcement of the public takeover offer. The shareholders of Ciba thereby have the opportunity to realize the full value of their investment plus a high premium immediately. The Board of Directors of Ciba supports our attractive offer and recommends its acceptance to Ciba´s shareholders. BASF expects the acquisition of Ciba to already make a positive contribution to earnings per share in the second year following the closing of the acquisition.

The customers and employees of the two companies will benefit from the transaction as well. With the acquisition, we are expanding BASF’s leading position in specialty chemicals with products and services for a variety of customer industries, in particular the plastics and coatings industries as well as water treatment. In the paper chemicals business, we will intensify the urgently needed restructuring process and become the leading supplier with an extensive portfolio. We offer Ciba and its employees a new home with a viable and long-term perspective. Basel will remain an important site for the combined business, in particular research. We plan to establish a global operating division there. We are also convinced that there is a good match between the cultures and traditions of the two companies.

On this website we provide information about the takeover offer and about BASF. You will also find all documentation and information required under the provisions of the Swiss Takeover Ordinance (TOO) here, including the offer prospectus once it has been approved by the Swiss Takeover Board.

All announcements in accordance with the Takeover Ordinance as well as the press releases of BASF in connection with the takeover offer can be read here. The most recent presentations and speeches on this issue are also available.

~~~Benefits for shareholders~~~

BASF is making an attractive offer to the shareholders of Ciba:

* High premium

At CHF 50.00 per share, BASF is offering an attractive price to the shareholders of Ciba. This offer price corresponds to a premium of 32 percent on the closing price of the Ciba share on September 12, 2008 and of 60 percent on the volume-weighted average price of the shares of Ciba in the 30 days prior to the announcement of the public takeover offer.

* The cash offer is an opportunity to immediately realize value

The offer price presents safe and immediate value to the shareholders of Ciba. They are able to realize the full value of their investment plus a high premium now. This is of particular importance with regard to current and upcoming challenges in the specialty chemicals market and in view of the development of Ciba’s share price in recent quarters.

* The offer exceeds analysts’ price targets

The price being offered by BASF exceeds the price targets of most analysts who cover the shares of Ciba. Furthermore, many analysts have reduced their price target for the shares of Ciba following publication of the half year results of the company.
The acquisition provides the following benefits to the shareholders of BASF:

* The transaction generates value

BASF expects the acquisition of Ciba to contribute to earnings per share already in the second year following the closing of the acquisition.

* Convincing strategic rationale

BASF and Ciba complement each other very well. With the acquisition of Ciba, BASF is expanding its leading position in specialty chemicals with products and services for a variety of customer industries, in particular the plastics and coatings industries as well as water treatment. In the paper chemicals business, BASF will intensify the urgently needed restructuring process and become the leading supplier with an extensive portfolio.

* The transaction meets the acquisition criteria of BASF

The acquisition of Ciba meets the criteria of BASF for acquisitions. Ciba is growing at an above-average rate, has strong capabilities for innovation, operates market-oriented and close to the customer, and will contribute to further reducing the cyclical nature of our results.

forced offer of BASF

Posted by : man

Have you read article in Economic Times how company arranges meeting and fixes price for buy back with big Mutual Funds house.
I think Reliance was highest holder of this stock in its portfolio at the time of buy back and only person close to this Mutual Fund can explain logic behind this transaction.
I am surprised how Rel MF can bear such kind of loss? Who was the party who had made this block purchase of the stock ?

Why there is a drop now a days ?

Hope our Jaichands are not hammering down this stock and sell it back to BASF with higher price.

Why BOSCH wants buy back shares from open market instead of going directly Buy Back from shareholders?
This are really very intricate questions and only few people like SEBI team can act as watchdog on this types of back door games which is played between MNC and Fund Houses.
Regards,
Manher

forced offer of BASF

Posted by : man

Have you read article in Economic Times how company arranges meeting and fixes price for buy back with big Mutual Funds house.
I think Reliance was highest holder of this stock in its portfolio at the time of buy back and only person close to this Mutual Fund can explain logic behind this transaction.
I am surprised how Rel MF can bear such kind of loss? Who was the party who had made this block purchase of the stock ?

Why there is a drop now a days ?

Hope our Jaichands are not hammering down this stock and sell it back to BASF with higher price.

Why BOSCH wants buy back shares from open market instead of going directly Buy Back from shareholders?
This are really very intricate questions and only few people like SEBI team can act as watchdog on this types of back door games which is played between MNC and Fund Houses.
Regards,
Manher