Fresenius Kabi Delisting Delay

Fresenius Kabi Oncology (FKO) had a promoter stake of 90% till 30-09-2012, which was brought down to 81% by an OFS, by the promoters of the company in October 2012. Thereafter, promoters wanted to go for delisting of the shares, instead of bringing down their stake to 75%, to meet the minimum public shareholding norms, as stipulated by SEBI.

Thereafter, a legal battle was fought by the promoters of FKO and the company, with SEBI and thereafter before SAT. Finally, SEBI had allowed the delisting to be carried out and completed, within a period of three months, vide its letter dated 22.07.2013. In pursuance thereto, delisting bid was to open on 15.10.2013 and close on 22.10.2013. However, as the delisting process could not get competed within this timeline, now FKO/ promoter sought an extension of two months, to complete the delisting process from SEBI. But SEBI has directed them to approach to SAT for such an extension.

Retail investors are in a big dilemma now, as they have been waiting for this delisting process to happen, which would have enabled them to tender their shares in open offer, to fetch a better price. Now, they are at the mercy of SAT, as FKO will have to run from pillar to post, to initiate the delisting process.