Fresenius moves SAT against Sebi's delisting order
Fresenius Kabi Oncology has again approached Securities Appellate Tribunal (SAT) against Sebi which recently gave a conditional nod to the company to delist from Indian stock market.
July 31, 2013 / 21:53 IST
Fresenius Kabi Oncology has again approached Securities Appellate Tribunal (SAT) against Sebi which recently gave a conditional nod to the company to delist from Indian stock market. Pursuant to an earlier SAT order, the Securities and Exchange Board of India on July 22 allowed the healthcare services firm to delist after meeting some conditions.
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The company has filed a fresh appeal before SAT which would be heard tomorrow. Allowing the company to initiate the delisting process, Sebi has asked it to complete the delisting procedure in three months. Besides, the company would have to take into account its pre-OFS (Offer for Sale) promoter holding of October 2012 to determine the minimum number of shares to be acquired for the delisting.
The healthcare services firm was engaged in a dispute with Sebi ever since it decided to delist its shares from the stock market despite having sold some promoter shares through OFS to meet the minimum 25 per cent public shareholding norms. The company was required to undertake further promoter share sale to completely meet the norms, but it decided to rather delist the shares due to "unforeseen circumstances" and sought permission from Sebi for the same.However, the permission was refused on the grounds that Fresenius had availed the OFS route, which was meant for meeting the minimum shareholding norms. It later approached the SAT, which asked the company to propose a fresh delisting offer to Sebi, which in the meantime had passed prohibitory orders against the company for failing to meet minimum public holding norms within June 3 deadline.
The restrictions on promoter dealings in the company shares would be reimposed if the company fails to complete its delisting process in three months, Sebi had said in its order. Other restrictions on promoters and directors would continue to remain in force till the time it is delisted, or till the time it attains 25 per cent public holding, it had noted.
Fresenius had sold 9 per cent promoter shareholding through OFS mechanism in October 2012 for complying with the minimum public shareholding norms, it later in April this year proposed to delist its shares from the bourses rather than selling a further 6 per cent to meet the listing requirement. The delisting offer has been approved by Fresenius 's public shareholders and also received in-principle approvals from BSE and NSE on May 30 and June 3, respectively. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
