The Pricol Minda saga continues yet again. Just weeks after Minda Corporation announced that it will exit its 15.7% stake in rival company Pricol, at around Rs 660 crore, raking in roughly Rs 160 crore, the Competition Commission of India on Tuesday approved the acquisition of up to approximately 8.79% of equity share capital of Pricol Limited by Minda Corporation Limited. The details of the CCI order are yet to be released.
Following the sale of its 15.7% stake, Minda Corporation's equity shareholding in Pricol has turned nil.
Meanwhile, Coimbatore-based Pricol on Tuesday informed in a regulatory filing, that consequent to the sale of Pricol Limited’s shares held by Minda Corporation Limited, 'we had filed for withdrawal of its writ petitions filed before the Madras High Court, with the liberty to raise the issue before CCI.'
Minda Corporation, in mid-last year had 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 stakes up to 24.5%. 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).