Saint-Gobain Abandons Attempt to Delist Indian Auto Glass Unit

French glass maker Compagnie de Saint-Gobain SA won't seek to delist its Indian-listed unit Saint-Gobain Sekurit India Ltd. (515043.BY) as minority shareholders offered to sell fewer shares than the minimum required for the delisting offer to go through, the manager to the offer said Monday.

Founders of Indian-listed companies have until June 3, 2013 to either pare down their stake below 75% or seek a delisting of local units to comply with the Indian market regulator's new rules requiring at least 25% of a listed company to be owned by minority shareholders.

Saint-Gobain Sekurit India's minority shareholders offered to sell 4.88 million shares--fewer than the minimum required to be tendered in at or below the price of INR90 a share, offer manager JM Financial Institutional Securities Pvt. Ltd. said in an exchange filing.

The price was arrived at after following a reverse book building process--a procedure required by the Indian market regulator to delist a company and protect the interest of minority shareholders.

The French glass maker controlled 85.8% of Saint-Gobain Sekurit India as of March 31, exchange data showed.

Most of the stake was held through an unlisted local unit--Saint Gobain Glass India which had sought to acquire 12.97 million shares or 14.23% of the balance paid-up share capital of the listed automotive glass making unit.

Saint Gobain Glass India had set an indicative delisting price of INR31 a share for the offer which ran between June 5 and June 11.

Shares in Saint-Gobain Sekurit India closed down 5% at INR50.85 a share on the Mumbai market which closed down 1.4% Monday.