Kolkata: The management of Emami Ltd is open to talks with the Parikh family of Zandu Pharmaceuticals for an amicable solution of the issue of management control in the company.
“We are ready to sit across the table with Parikhs for an amicable solution as we are also looking at shareholders interest,” Emami Ltd director Harsh V Agarwal told PTI.
“We would be working together with the Parekh family for the future growth of Zandu,” Agarwal had earlier said at the time of the announcement of the buying of 24% from Vaidyas.
Parikhs, one of the two promoter families, holds 22% in the company, while Emami recently bought Vaidya family’s 24% in Zandu at around Rs 130 crore. Following the move, Emami has come out with an open offer for another 20% as per SEBIs takeover code.
But, the battle for Zandu’s management control is not going to be simple after Vaidya family was trying to stop Emami to get the management control.
Agarwal said Emami was open to form a management board jointly. But this does not show any sign of solution to the impasse at least in the short term.
When Parikhs have not made any counter offer to Emami, management of the Kolkata-based FMCG major also do not propose to revise the open offer price despite the market price of Zandu Pharma had doubled from the open offer price of Rs 7,315 per share.
“We do not have any plan to revise the offer price,” Agarwal said. The attempt by Zandu’s board of directors to issue preferential allotment of shares to the Parikhs failed after Emami sent a legal notice, saying the company cannot issue preferential shares to its promoters at a time when an open offer is being made by Emami.
The preferential allotment would have been able to increase Parikhs’ stakes. But, the Parikhs remained active to accumulate shares from the open market.
Statistics submitted to the stock exchanges show that Girish Parikh and his family member Ajay Parikh have together increased their stake in the company recently by 2%, thus taking their total stake to 22%.