SAT asks AP Paper to pay non-compete fee to investors

Securities Appellate Tribunal (SAT) has asked AP Paper (International Paper hold’s 75%) to pay non-compete fee to all investors who tendered in the open offer, reports CNBC-TV18's Sajeet Manghat.  

SAT has dismissed the International Paper petition which challenged Securities and Exchange Board of India's (Sebi) order asking International Paper to pay the non-compete fee to all the investors.
The open offer for all the AP Paper investor was at Rs 544 per share and Sebi argue that this non-compete fee should be provided to all the shareholders who are tendering the shares in the open offer. The open offer for AP Paper is closed so only those shareholders who have tendered their share and whose shares have been accepted in the open offer will be getting this non-compete fee of Rs 130.73 per share.
The money as part of the entire proceeding, the entire non-compete fee was supposed to be deposited in an escrow account. As per the decision of SAT or the higher court it was supposes to be either given to the shareholders or taken back. International Paper has recourse to go for an appeal to the Supreme Court after that the decision will be taken.
As far as current shareholders are concerned, they will not be having any impact on it except for those shareholders who have already tendered and they have got the open offer price of Rs 544 per share.
At 12:37 hrs the share was quoting at Rs 347.70, up Rs 4.95, or 1.44%.