DFM Foods Limited in its board meeting held on August 25, 2022, had approved the proposal by Advent International for acquiring shares from public shareholders and voluntarily delisting DFM Foods from the stock exchanges.
Following this Advent International made a public offer for acquiring the shares from public shareholders through a reverse book-building process, setting the floor price at Rs. 263.8 per share.
On December 21, 2022, Advent International rejected the price discovered (Rs. 525 per share) in the reverse book-building process since this was higher than what the company expected and made a counter-offer of Rs. 467 per share.
The window to tender the shares of DFM Foods in the counter window will open on December 30, 2022, and close on January 5, 2023.
Counter Offer Details
| Offer Opening Date | December 30, 2022 |
|---|---|
| Offer Closing Date | January 05, 2023 |
| Price | Rs. 467 per share |
| Announcement of success/failure of the counter-offer | January 12, 2023 |
| Date of payment | January 19, 2023 |
How do I tender shares in the DFM Foods counter-offer?
You can tender shares in the counter offer of DFM Foods delisting on Console. You can check the process in detail here.
Note: If you participated in the first window and do not withdraw the order, it is deemed to be accepted at the counter-offer price. You can create a ticket here if you wish to withdraw the order.
What happens if I fail to tender my shares in the delisting offer?
If you have missed applying for the delisting, you can tender these shares offline directly to the company, and they will buy them back from you. Here are the details you’d want to know:
Tender Window: You will have a one-year period from the date of unlisting to tender these shares to the company. You can tender these shares anytime during this period.
Price: The tender price will be fixed at the exit price fixed by the company.
How: As a Shareholder, you would have received the “Exit Application form” that needs to be duly filled and submitted to the company registrar. Shareholders are also required to transfer these securities held in their demat account to the designated demat account of the company. The mode of transfer will be “off market” and you will have to get in touch with your DP to initiate such a transfer through DIS. You can read about off-market share transfers here.
After the transfer has been made, a counterfoil/photocopy of their depository participant instruction slip evidencing transfer of dematerialized Equity Shares to the Special Depository Account along with the duly filled “Exit Application form” are to be sent through a registered post to the registrar.
Funds would be credited to the bank account mapped with the demat account from which the transfer has been made.
In case you don’t receive/or lose the application, then you can contact the registrar for a new application form. If you face any other difficulties, you can get in touch with the companies’ RTA. They will guide you through the further process.