It is not free run for acquirers as far as open offers are concerned. The market regulator Securities and Exchange Board of India (SEBI) has taken a view that public investors should get the same price as the promoters during open offers even if a part of the original acquisition price is disguised as non-compete premium.
In its latest order on the matter, SEBI has asked the buyout fund Actis to increase the price of open offer for the minority shareholders of Phoenix Lamps by 25 per cent to Rs 190 a share.
Actis had priced the open offer at Rs 152 originally. The open offer was supposed to open on August 31 and close on September 19.
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