Minda Corp. Ltd., in addition to private equity investors, is said to be the likely seller in the large block deal that took place on Wednesday, business television CNBC-TV18 reported, citing sources.
The buyers, on the other hand, include a clutch of domestic and foreign investors, the report added, claiming that 15% of Pricol's equity has changed hands in multiple block deals that took place on Wednesday. The official information on the buyers and sellers in the transaction is currently not available; the report continued.
The development, if true, has brought a further twist to the case just days after both companies announced receiving notices from antitrust regulator the Competition Commission of India (CCI) to present their respective arguments in the case, which involves Minda's proposed acquisition of an additional 8.79% stake in Pricol.
Minda Corporation, mid-last year, announced its decision to acquire a 15.7% stake worth Rs 400 crore in rival Pricol Ltd. While Minda initially brushed off the move as putting extra money to good use, the market speculated it was a hostile takeover. Pricol's top management promptly responded by reiterating that they had no plans of undertaking any secondary sales or raising equity capital. Pricol management stated it would use all possible legal and financial means to prevent the deal in order to maintain control over the company.
However, things took another turn when Minda Corporation announced its intention to approach the Competition Commission of India (CCI) about taking its stake up to 24.5%. Coimbatore-headquartered Pricol, in response, has filed a writ petition at Madras High Court against Minda Corporation, challenging the latter's validity of application to the Competition Commission of India (CCI).