Basmati king Kohinoor faces hostile takeover
A bitter battle is brewing as India's biggest player in the rice market, Kohinoor Foods (formerly Satnam Overseas), which accounts for about 38% of the country's basmati market, is trying to ward off what it sees as a hostile takeover bid.
By TNN |
NEW DELHI: Suddenly, the aroma of Indian basmati has got mixed up with the scent of gunpowder. A bitter battle is brewing as India's biggest player in the rice market, Kohinoor Foods (formerly Satnam Overseas), which accounts for about 38% of the country's basmati market, is trying to ward off what it sees as a hostile takeover bid.
The Kohinoor management has petitioned the Securities and Exchange Board of India (SEBI) and Company Law Board (CLB), accusing Mumbai-based Temptation Foods Ltd of leading a consortium that has covertly acquired a shareholding of almost 30% in Kohinoor Foods. These frantic calls to SEBI and CLB have been made in the last 15 days.
The acquisitions, Kohinoor's petitions to SEBI and CLB alleged, were in violation of the market watchdog's takeover code which mandates public disclosure by anybody seeking to acquire more than 15% of a company. Kohinoor has sought an ex parte interim stay from CLB on any further acquisition of Kohinoor shares by Temptation and 45 other entities listed as "acting in concert" with Temptation, and a suspension of their voting rights.
The list of respondents includes foreign institutional investors like Merrill Lynch Capital Markets Espana SA and Morgan Stanley Mauritius Company Ltd. Among them, Kohinoor alleged in its petition, these 46 entities had picked up shares in bulk since December 2007 adding up to 29.35% of Kohinoor's equity capital.
Courtesy: Times of India
The Kohinoor management has petitioned the Securities and Exchange Board of India (SEBI) and Company Law Board (CLB), accusing Mumbai-based Temptation Foods Ltd of leading a consortium that has covertly acquired a shareholding of almost 30% in Kohinoor Foods. These frantic calls to SEBI and CLB have been made in the last 15 days.
The acquisitions, Kohinoor's petitions to SEBI and CLB alleged, were in violation of the market watchdog's takeover code which mandates public disclosure by anybody seeking to acquire more than 15% of a company. Kohinoor has sought an ex parte interim stay from CLB on any further acquisition of Kohinoor shares by Temptation and 45 other entities listed as "acting in concert" with Temptation, and a suspension of their voting rights.
The list of respondents includes foreign institutional investors like Merrill Lynch Capital Markets Espana SA and Morgan Stanley Mauritius Company Ltd. Among them, Kohinoor alleged in its petition, these 46 entities had picked up shares in bulk since December 2007 adding up to 29.35% of Kohinoor's equity capital.
Courtesy: Times of India
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