Onida feud: Gulu buys sis-in-law Soni's stake for Rs 85.6 cr
It's turning out to be a season of business family settlements.
By ET Bureau |
NEW DELHI: It's turning out to be a season of business family settlements. Close on the heels of the Lakhani family settling on a split in business, the Mirchandanis - promoters of the Onida electronics brand - have finally closed the chapter on a two-year long dispute. As per the agreement, Gulu Mirchandani, chairman of Mirc Electronics has bought out 33.3% stake held in the name of his sister-in-law in Guviso Holdings, the holding company, which in turn, owns 53% in public-listed firm Mirc, for Rs 85.6 crore.
This takes his shareholding to 66.6% in Guviso which has now been transferred to a separate holding entity Gulita Securities. The balance stake of Guviso is with his brother-in-law Vijay Mansukhani who is the managing director of Mirc Electronics. Mirc Electronics, a consumer electronics and appliance company operates through brands such as Onida and Igo.
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As reported by ET, the deal which was scheduled to be closed in April had got delayed. Some reports suggested that a bounced cheque which was meant to be a token sum as part of the intra-group transaction could even derail the family settlement.
Mirc Electronics is promoted by the Mirchandani family. Besides minority stakes owned by promoter group individuals, the group held 52.74% through the holding firm Guviso. The three promoters - brothers Sonu, Gulu and Gulu's brother-in-law Vijay Mansukhani - owned 33.3% stake each in Guviso.
As reported by the media, Sonu wanted to exit the firm and had even initiated talks with external investors including a few private equity firms and other rival consumer durable makers. Gulu, however, did not wish to bring an external investor.
After almost two years of negotiations, the brothers had come to an agreement in April this year where Gulu Mirchandani was to buy out the shares held in the name of Sonu's wife Soni in a deal valued at around Rs 111 crore. The final deal has been struck at a 24% discount to the price which was announced in April this year.
In March 2008, Sonu Mirchandani's sons had transferred their shares to their mother's name. Post this transaction, Soni Mirchandani held 33.3% in Guviso. This stake has now been acquired by Gulu Mirchandani.
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