Home Case Index All Cases SEBI SEBI + AT SEBI - 2019 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (5) TMI 1173 - AT - SEBIRevision of offer price for acquiring 26 percent of the shares of the target Company - SEBI resorted to the provisions of Regulation 8(16) of the SAST Regulations and appointed M/s. Haribhakti and Company LLP (referred to hereinafter as ‘Haribhakti’) as Chartered Accountant for computation of fair price of the target company - HELD THAT:- Considering the report of the two valuers submitted by the appellant Tenneco Inc. alongwith the draft letter, respondent SEBI took the course of appointing an independent Chartered Accountant Haribhakti. On the basis of this third valuation report in its direction/observation has revised the offer price to ₹ 608.46/-. The record of SEBI as produced before us would show that after communicating these observations the appellant sought the material from respondent SEBI on the basis of which Haribhakti had arrived at the said conclusion. Though elaborate procedure of hearing the acquirer before appointing independent Chartered Accountant by respondent SEBI is not required, the respondent SEBI ought to have given an opportunity to the appellant before revising the offer price by providing material on the basis of which Haribhakti had arrived at different valuation. Then respondent SEBI should have taken decision by recording brief reasons upon consideration of the objections, if any, received from the appellant to the valuation arrived at by Haribhakti. In the circumstance, in view of the above fact there is no need to consider the plea of Mr. Mohan Krishnaswamy, the appellant and counter submissions of the appellant. The case is remitted back to the respondent SEBI. Since the appellant has now received the valuation report of Haribhakti and other documents during the pendency of the appeal it would be at liberty to raise objections to the report before the respondent SEBI, within a period of three weeks from the date of this order.
|