Choice International Limited (Hereinafter Referred to As “Target Company” Or “Target” Or “CIL”)
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LETTER OF OFFER THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION This Letter of Offer is sent to you as a Shareholder(s) of Choice International Limited (hereinafter referred to as “Target Company” or “Target” or “CIL”). If you require any clarifications about the action to be taken, you may consult your Stock Broker or Investment Consultant or Manager/Registrar to the Offer. In case you have recently sold your shares in the Company, please hand over this Letter of Offer and the accompanying Form of Acceptance cum Acknowledgement and Transfer Deed to the Member of Stock Exchange through whom the said sale was effected. Open Offer By Mr. Kamal Poddar , residing at Flat No. 1902, IVY, Nahars Amrit Shakti, Chandiwali, Mumbai -400072, Mobile n o.: +91 9724242424 ; (Acquirer 1) , Mr. Arunkumar Poddar, residing at Flat No. 1901, IVY, Nahars Amrit Shakti, Chandiwali, Mumbai 400072, Mobile no.: +91- 9022242424;(Acquirer 2) , Ms. Sonu Poddar, residing at Flat No. 1901, IVY, Nahars Amrit Shakti, Chandiwali, Mumbai 400072, Mobile no.: +91- 9969579365; (Acquirer 3) , Ms. Vinita Sunil Patodia, residing at B-903, Vallencia, Hiranadani Garden, Powai, Mumbai, Maharashtra - 400076, Mobile no.: +91-9819844085; (Acquirer 4) and Ms. Archana Anil Patodia, residing at 904/B, Vallencia, Hiranadani Garden, Powai, Mumbai, Maharashtra - 400076, Mobile no.: +91- 9820078789; (Acquirer 5) (Acquirer 1, Acquirer 2, Acquirer 3, Acquirer 4 and Acquirer 5 hereinafter collectively referred to as the “Acquirers”) along with Mr. Sunil Kumar Patodia (PAC 1) , Sunil Chothmal Patodia (HUF) (PAC 2) , Mr. Anil Chothmal Patodia (PAC 3) , Anil Chothmal Patodia (HUF)(PAC 4) , Mr. Suyash Sunil Patodia (PAC 5) and Ms. Shreya Patodia (PAC 6) , residing at B-903, Vallencia, Hiranadani Garden, Powai, Mumbai, Maharashtra– 400076; Mr. Aayush Anil Patodia (PAC 7), Ms. Aastha Anil Patodia (PAC 8), residing at 904/B, Vallencia, Hiranadani Garden, Powai, Mumbai, Maharashtra – 400076; Ms. Hemlata Kamal Poddar (PAC 9), Kamal Poddar (HUF) (PAC 10), residing at Flat No. 1902, IVY, Nahars Amrit Shakti, Chandiwali, Mumbai-400072; Arunkumar Poddar (HUF) (PAC 11), residing at Flat No. 1901, IVY, Nahars Amrit Shakti, Chandiwali, Mumbai 400072 and Shree Shakambhari Exims Private Limited (Formerly known as Upton Infrastructure Private Limited) (PAC 12), having its registered office at Shree Shakambhari Corporate Park, Plot No. 156-158, J. B. Nagar, Andheri (East), Mumbai- 400099 ( PAC 1 to PAC 12 hereinafter collectively referred to as “Persons Acting In Concert”/”PACs”) with the Acquirers to the shareholder(s) of Choice International Limited Registered office : Shree Shakambhari Corporate Park, 156 158, J.B. Nagar, Andheri (E), Mumbai- 400099 Telephone No. : +91 022 6707-9999, Email ID: [email protected], Website : www.choiceindia.com To acquire upto 52,01,248 (Fifty Two Lakhs One Thousand Two Hundred And Forty Eight) Equity Shares of the face value of Rs. 10 each ("Offer Shares"), representing 26% of the fully paid up Equity Share Capital of the Target Company at a price of Rs. 63/- (Rupees Sixty Three) per fully paid up Equity Share of Rs. 10 each, payable in cash. Please Note: 1. This Offer is being made by the Acquirers pursuant to regulation 3(2) of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 and subsequent amendments thereto (“SEBI (SAST) Regulations”). 2. This Open Offer is not conditional upon any minimum level of acceptance in terms of regulation 19 of SEBI (SAST) Regulations. 3. This Open Offer is not a competing offer in terms of regulation 20 of the SEBI (SAST) Regulations. 4. There has been no Competing Offer as on the date of this Letter of Offer. 5. The Offer is subject to the receipt of statutory and other approvals as mentioned in Paragraph 7.4 of this Letter of Offer. 6. If there is any upward revision in the Offer Price or the number of Shares sought to be acquired under the Open Offer by the Acquirers at any time prior to the commencement of the last three working days before the commencement of the tendering period i.e. upto Friday, October 06, 2017 the same would be informed by way of a public announcement in the same newspapers where the original Detailed Public Statement appeared. The revised Offer Price would be payable for all the Equity Shares validly tendered anytime during the Tendering Period. 7. A copy of the Public Announcement, the Detailed Public Statement, Draft Letter of Offer and Letter of Offer (including Form of Acceptance cum Acknowledgment) are also available on SEBI’s website (www.sebi.gov.in). MANAGER TO THE OFFER REGISTRAR TO THE OFFER CORPORATE CAPITALVENTURES PRIVATE LIMITED SHAREX DYNAMIC (INDIA) PRIVATE LIMITED SEBI Regn. No.: MB/INM000012276 SEBI Regn. No .: INR000002102 Regd. Off.: 160 (Basement), Vinoba Puri, Lajpat Nagar –II, New Delhi- 110024 Address: Unit No.1, Luthra Industrial Premises, Safed Pool, Andheri Kurla Tel No.: +91-11-41704066 Road, Andheri East, Mumbai, Maharashtra 400072 Contact Person: Mr. Kulbhushan Parashar Tel No.: +91 22-28515606/5644 E-mail: [email protected] Contact Person: Mr. B S. Baliga Website: www.ccvindia.com Email ID: [email protected] , Website: www.sharexindia.com SCHEDULE OF THE ACTIVITIES PERTAINING TO THE OFFER Nature of Activity Day and Date Revised Day and Date Date of the Public Announcement Tuesday, May 30, 2017 Tuesday, May 30, 2017 Date of publication of the Detailed Public Statement Tuesd ay, June 06, 2017 Tuesday, June 06, 2017 Last date of filing of the draft Letter of Offer with SEBI Tuesday, June 13, 2017 Tuesday, June 13, 2017 Last date for a Competing Offer Wednesday, June 28, 2017 Wednesday, June 28, 2017 Identified Date* Friday, July 07, 2017 Wednesday, September 27, 2017 Last Date by which Letter of Offer will be dispatched to the Shareholders Friday, July 14, 2017 Thursday, October 05, 2017 Last date by which an independent committee of the Board of Target Company shall give i ts Wednesday, July 19, 2017 Tuesday, October 10, 2017 recommendation Advertisement of Schedule of Activities for Open Offer, status of statutory and other Thursday July 20, 2017 Wednesday, October 11, 2017 approvals in newspaper Date of commencement of t endering period (Offer Opening Date) Friday, July 21, 2017 Thursday, October 12, 2017 Date of expiry of tendering period (Offer Closing Date) Thursday, August 03, 2017 Friday, October 27, 2017 Date by which all requirements including payment of considera tion would be completed Monday, August 21, 2017 Friday, November 10, 2017 *Identified Date is only for the purpose of determining the names of the shareholders as on such date to whom the Letter of Offer would be sent. All owners (registered or unregistered) of Equity Shares of the Target Company (except the Acquirers and the PACs) are eligible to participate in the Offer any time before the closure of the Offer. TABLE OF CONTENTS RISK FACTORS .................................................................................................................................................................................................... 2 1. DEFINITIONS .............................................................................................................................................................................................. 3 2. DISCLAIMER CLAUSE ................................................................................................................................................................................ 5 3. DETAILS OF THE OFFER ........................................................................................................................................................................... 5 4. BACKGROUND OF THE ACQUIRERS AND THE PACs ........................................................................................................................... 7 5. BACKGROUND OF CHOICE INTERNATIONAL LIMITED ....................................................................................................................... 14 6. OFFER PRICE AND FINANCIAL ARRANGEMENTS ............................................................................................................................... 17 7. TERMS AND CONDITIONS OF THE OFFER ........................................................................................................................................... 19 8. PROCEDURE FOR ACCEPTANCE AND SETTLEMENT ......................................................................................................................... 20 9. DOCUMENTS FOR INSPECTION ............................................................................................................................................................ 23 10. DECLARATION BY THE ACQUIRERS INCLUDING THE PACs .............................................................................................................. 24 RISK FACTORS RISKS RELATED TO THE TRANSACTION, THE PROPOSED OPEN OFFER AND THE PROBABLE RISKS INVOLVED IN ASSOCIATING WITH THE ACQUIRERS AND THE PACs (A) Risk relating to the transaction The transaction is a conversion of Warrants into Equity Shares on May 30, 2017 by the Acquirers and PACs issued on preferential basis. (B) Risk relating to the Offer 1. To the best of knowledge of the Acquirers and the PACs, no statutory approvals are required for completing the offer except permission of the RBI shall be required for any change in the shareholding of an NBFC, including progressive increases over time,