Goodyear India Delisting Offer Fails

Goodyear India Ltd. shares remain listed on the Bombay stock exchange following a failed delisting offer from parent company Goodyear Tire & Rubber. The US tyre maker made an offer to acquire close to six million shares in the Indian company, a figure representing 26 per cent of its equity capital. However it only received bids for around 1.136 million shares at a discovered price of Rs 340 (₤4.96) each. According to the Bombay Stock Exchange’s delisting regulations, the delisting offer would have only been considered successful if at least 3.69 million shares had been tended at or below the discovered price.

“Since the number of offer shares tendered in the reverse book building process at or below the discovered price is less than the minimum number of offer shares required to be accepted for the delisting offer to be successful in terms of regulation 17 of the delisting regulations, the delisting offer is deemed to have failed in terms of regulation 19(1) of the delisting regulations,” reported Citigroup Global Markets India in a filing submitted to the Bombay Stock Exchange. “Accordingly, the acquirer will not acquire any offer shares tendered by the public shareholders pursuant to the delisting offer and the equity shares will continue to remain listed on the BSE.”