Philips mulls buy back of non-promoters’ shares

June 14th, 2008 - 12:02 am ICT by IANS  

Kolkata, June 13 (IANS) Philips Electronics India Ltd, which got delisted from the stock exchanges, is planning to buy back minority share holdings of 3.5 percent for Rs.1,800 million, the company said here Friday. “We will send letters of offer to the shareholders … it is absolutely their discretion whether they will accept the offer or reject it,” Philips Electronics India Ltd chairman S.M.Datta said on the sidelines of the firm’s annual general meeting.

The company’s board of directors at its March 11 meeting considered and approved the proposal to buy back fully paid-up equity shares up to a maximum of 6,923,076 equity shares and cash outflow not exceeding Rs.1,800 million at Rs.260 per share.

The promoter company, Koninklijke Philips Electronics N.V., holds 96.5 percent of the issued share capital of the company.

Said Murali Sivaraman, managing director and CEO (Indian subcontinent): “We are eyeing both organic and inorganic growth at all segments of the company ranging from electronics, healthcare to lifestyle.”

In the healthcare and lifestyle segments, the firm may look at acquisition and joint-ventures, he said.

“The primary focus of the company is organic growth,” Sivaraman added.

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