A much awaited offer for Onmobile Global* shareholders: after several conference calls where shareholders were asking the company to buy back shares, its largest shareholder Onmobile Systems Inc has made an open offer for 10.03% of the company's shares for a total consideration of Rs 47.6 crore (around $7.6M), offering existing shareholders an opportunity to exit at Rs 40 per share for maximum of 11,900,000 shares. This is a voluntary open offer, which allows any shareholders that want to exit, an option. More here. The Onmobile shares closed today at a price of Rs 30.4, up Rs 1.4 for the day. At Rs 40 per share, the offer price is: - 31.58% (Rs 9.6) higher than the current price of Rs 30.4. At that price, this open offer would have cost Onmobile Rs 36.17 crore - 4.31% (Rs 1.8) lower than the 52 week high of Rs 41.8. At that price, this open offer would have cost the company Rs 49.74 crore - 2.1 times (and Rs 20.95 higher) than the 52 week low of Rs 19.05. At that price, this open offer would have cost the company Rs 22.67 crore. Onmobile's current market cap is Rs 347 crore, with a free-float of Rs 225 crore. While technically, this is not a buyback from Onmobile Global, it is in the same vein: financial / retail investors are getting an exit, and Onmobile Systems Inc's shareholdering is increasing. This offer can also been seen as Argo Capital, which owns 74.7% of the voting share capital in…
