Minda Corp. has purchased a 15.7% stake in automotive parts manufacturing peer Pricol Ltd., setting the stage for a potential confrontation with the promoters of the target company.
Minda has bought the stake for Rs 400 crore in an open-market transaction, according to its exchange filing. No prior approvals have been obtained, it said.
This is "merely" a financial investment, without acquiring any special rights in Pricol other than the rights as a shareholder, the statement said.
Promoters owned 36.53% of Pricol as of December, according to disclosures to exchanges. The public shareholders held the rest.
The acquisition flames speculation around a potential hostile bid by Minda as Pricol promoters have declined to sell their shares.
The company or any representative of the promoter group has no intention of selling their stake to Minda, Vikram Mohan, managing director at Pricol, told BQ Prime in an interview. "The promoters of Minda Corp reached out to me many months ago asking whether we were interested in selling our stake in the company," Mohan said. "And I very clearly told them that we don't."
"The promoter group is absolutely committed to the company and its future prospects and has absolutely no intention of undertaking any secondary sale of the promoter stake," he said.
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