Bajaj family dispute nears settlement

23 December 2008

The six-year old Bajaj family dispute seems to be nearing a settlement, which will also untangle the complicated share holdings amongst among the various group companies headed by brothers and cousins in the Bajaj clan.

Though there have been several attempts to resolve the dispute including recommendations from the Company Law Board, the issues between the brothers remained bitter and unresolved.

However this time a firm settlement seems to have been reached, with the details havinf been filed with the National Stock Exchange.

Under the agrement, Rahul Bajaj has acquired 29.2 per cent in Bajaj Hindusthan from all family members. He will acquire the Bajaj Hindustan Limited stake from all group companies and will sell a 29.6-per cent in the sugar producer to Shishir Bajaj.

Accodingly, Shishir Bajaj will enlarge his stake in the sugar giant from 2.85 per cent to 32.47 per cent, for which he would pay reound Rs250- Rs260 crore.

The deal will be done for zero consideration and it could be adjusted when Shishir Bajaj sells his stake to Rahul Bajaj, as agreed.
 
Shares of Bajaj Hindustan, which had fallen due to a consolidated net loss of Rs197.62 crore in the financial year ended September 2008, opened on a high note this morning.