SKIL Infra will make an open offer for Everonn Edu shares

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SKIL Infra will make an open offer for Everonn Edu shares

SKIL Infrastructure will make an open offer for the shares of Everonn Education, said Nikhil Gandhi, Chairman, Pipavav Shipyard, in an exclusive interview to CNBC-TV18. SKIL also controls shipbuilder Pipavav Shipyard.

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Excerpts from Bazaar on CNBC-TV18 Watch the full show » RELATED NEWS Pipavav promoter may pick up stake in Everonn: Sources Nikhil Gandhi may pick up stake in Everonn Education ALSO READ See latest News about Pipavav Defence See previous management interviews See what other Experts & Brokerages are saying about Pipavav Defence Pipavav Defence BSE | NSE 29/05/12 Are Mutual Funds betting on Pipavav Defence?

SKIL Infrastructure will make an open offer for the shares of Everonn Education, said its Chairman Nikhil Gandhi in an exclusive interview to CNBC-TV18. SKIL also controls shipbuilder Pipavav Shipyard . "We will decide on an open offer after the board's nod," Gandhi, who is also the Chairman of Pipavav Shipyard, stated.

Earlier today, the board of Everonn Education approved a preferential allotment of 40 lakh convertible debentures to SKIL Infra at Rs 208.4 crore. The deal works out at Rs 521 per debenture. SKIL Infra is to be categorised as co-promoter and will hold 20.9% stake on conversion. The existing promoters will hold 20.6% stake.

Here is a verbatim transcript of the exclusive interview with Nikhil Gandhi on CNBC-TV18. Also watch the accompanying video.

Q: You are going to have 20.9% stake post conversion of the debentures. Do you make an open offer now at Rs 521 or only on conversion of the debentures?

A: The board has approved the deal yesterday. At the same time, board has put some conditions, which we are yet to receive those communications. Once we receive those communications, we will go through it carefully. Once those are acceptable to our board and then we will give the confirmation back to Everonn. So, this is the actual status as of now.

Q: Assuming that you go ahead with the deal, the board gives you the nod for the deal, you would have to make an open offer, right since the stake is 20% plus?

A: That's right; there will have to be an open offer.

Q: Is that now or only on the conversion of debentures and if you can tell us when the conversion happens?

A: I am not an expert, but according to SEBI (Securities and Exchange Board of India) regulation, we may have to do now. Of course, the investment bankers will have to look at it very carefully, but I suppose as I understand it will have to be now.