Bajaj brothers end war
The six-year-old dispute among Bajaj brothers, Rahul and Shishir, came to an end on Wednesday with both sides withdrawing petitions from the Company Law Board, reports Devraj Uchil.business Updated: Dec 31, 2008 20:26 IST
The six-year-old dispute among Bajaj brothers, Rahul and Shishir, came to an end on Wednesday with both sides withdrawing petitions from the Company Law Board.
The petition was filed by the Shishir Bajaj group, which accused Rahul Bajaj of trying to oust him from the chairmanship of Bajaj Sevashram. The Company Law Board advised the two sides reach an amicable settlement.
It has been decided that the Rahul Bajaj faction would transfer its stake in Bajaj Hindustan and Bajaj Consumer Care in exchange of Shishir Bajaj’s nearly 2 per cent stake in Bajaj Auto.
Last week, Bajaj Hindusthan had told the stock exchanges that Rahul Bajaj would buy 29 per cent stake in the company and would transfer the acquired shares, along with 0.21 per cent already held by him, as well as the holdings of six other family members amounting to 29.6 per cent, to Shishir.
Rahul Bajaj on Tuesday bought 29 per cent in Bajaj Hindusthan for Rs 265.7 crore through open market transactions, as a precursor to this settlement.
Counsels from both sides informed CLB Chairman S Balasubramanian on Wednesday that the dispute had been amicably settled, and the share transactions are almost over.
Post transfer of shares, Shishir would own 32.5 per cent of Bajaj Hindusthan. He is expected to give up his holding in Bajaj Auto.