ICICI Ventures, PremjiInvest object Subhiksha's merger plan

NEW DELHI: Retail chain Subhiksha Trading Services Ltd today said some of its major stakeholders, including private equity firm ICICI Ventures, Azim Premji promoted PremjiInvest, are objecting its merger plan with Chennai-based Blue Green Construction and Investments Ltd.

The lenders, who hold a substantial stake in Subhiksha Trading Services (STSL), have asked for a halt to merger till the ongoing corporate debt restructuring (CDR) process in the retail chain is completed, STSL said in a statement.

"We understand that based on requests from some banks to hold the merger in abeyance till the CDR process is completed," some stakeholders who have earlier approved the merger are objecting now, the statement added.

PremjiInvest, ICICI Venture are among the stakeholders who are objecting the move, it said.

While ICICI Ventures has a 23 per cent stake in STSL, PremjiInvest has another 10 per cent.

When contacted, ICICI Venture Managing Director Renuka Ramanathan said: "We do not comment on our individual investment portfolio."

STSL, on the other hand said that all stakeholders had earlier consented to the merger and the issue is now before the Madras High Court.

The company had last year acquired 40 per cent stake in Blue Green Construction for Rs two crore.