press_release_bajaj.docx
DESCRIPTION
Press_Release_Bajaj.docxTRANSCRIPT
Bajaj Electricals makes open offer to purchase Bluestar Mumbai, January 30th, 2015: The Board of Directors of Bajaj Electricals in a statement released to the public announced a possible offer falling under Sections 390 to 394 (the Merger Provisions) of the Companies Act. 1956. It does not represent a firm intention to make an offer. Accordingly, there can be no certainty that any offer will ultimately be made even if the pre-conditions referred to below are satisfied or waived. Bajaj Electricals today announced its proposal to combine the two companies. The potential merger would unleash transformational opportunities for the new entity to achieve higher sales and increased customer base through sharing of resources and a wider distribution network. The new entity would retain both the brands and protect respective customer bases.Bajaj Electricals confirms that it will not make a hostile offer directly to Bluestar shareholders and will only proceed with an offer with the recommendation of the board of directors of Bluestar.ProposalUnder the terms of the proposal Bluestar shareholders would receive, for each Bluestar share, 1.8 shares of Bajaj Electricals and cash in lieu of fractional shares, representing an indicative value of Rs 415.10 per share. Under the final proposal, Bajaj Electricals and Bluestar shareholders would own approximately 38% and 62% respectively, of the combined company.On the basis of Bajaj Electricals closing share price of Rs 234.05on29thJanuary 2015 the proposal represents a premium of approximately 27% over the 1 month weighted average priceIn the absence of further discussions or an extension of the deadline for making a firm offer under the Code, Bajaj Electricals proposal will expire at 5:00 p.m. IST on 6th February 2015. Baja Electricals is asking Bluestar shareholders to urge the Bluestar board to immediately begin meaningful engagement with Bajaj Electricals following the talks on 30th January 2015, and extend the period for negotiating a possible transaction.