The tribunal further instructed Sebi to file a reply within 10 days and listed the matter for admission on 9 October.
In a letter dated 30 August, the market regulator appointed MM Nissim & Co as an independent chartered accountant to value the shares of Federal-Mogul Goetze for the open offer.
Promoter Pegasus Holdings has challenged the market regulator’s decision to appoint an independent valuer, stating that no such requirement exists under law.
The open offer was initiated by an indirect change in the promoter group of Federal-Mogul, following the merger between Pegasus Merger Co and Tenneco Inc, the ultimate holding company of Federal-Mogul Goetze (India).
The tribunal is examining the matter concerning the appropriate norm for determining the offer price.
“We find that the provision of Regulation 8(4) will come into play only if the offer price, as per Regulation 8(3) and 8(5), is incapable of being determined. We note from the disputed order that there is no evidence to suggest that the respondent (Sebi) has concluded that the price of the shares cannot be determined under Regulation 8(3) or 8(5),” observed Justice Tarun Agarwala.
Sebi had intervened in the valuation of the offer price of the company earlier as well, in November 2018, following the acquisition of Federal-Mogul Goetze by Tenneco earlier that year. Sebi had appointed Haribhakti & Co for an independent fair valuation and later, in March 2019, directed a revision of the offer price to Rs 608.46 apiece from Rs 400 per share. At that time, the company had argued that the valuation methodology had not been supplied by Sebi, nor were they given an opportunity to review it.
On Friday, shares of Federal-Mogul Goetze closed at Rs 370, dropping nearly six per cent over its previous close.
First Published: Sep 15 2023 | 7:45 PM IST