A court-convened extraordinary general meeting (EGM) of shareholders on Tuesday saw the management of Akzo Nobel India (ANI) going all out to defend the proposed merger of three unlisted entities with the chemicals industry company, amid criticism from minority shareholders.
The defence was an extension of steps that the management took in the past few weeks to convince institutional investors about the merits of the merger. “Our teams have met and managed to convince some of the institutional investors about the merger,” said ANI managing director Amit Jain. “It is about creating shareholder value which, I believe, the merger will help attain.”
If the merger were to go through, three unlisted companies wholly owned by the Amsterdam headquartered parent entity, including Akzo Nobel Coatings India Ltd, Akzo Nobel Chemicals (India) Ltd and Akzo Nobel Car Refinishes India Pvt. Ltd, will be made part ANI. ANI is listed on the Bombay Stock Exchange.
The proposed merger was announced after an October board meeting, citing merits of synergising the capabilities of the three holdings.
While admitting that the management’s endeavors have managed to convince some of the dissenting investors, doubters still exist, implying that a buyback for small dissenting shareholders is still on the anvil. Added Jain: “We have also kept the option of the buyback open, in case of dissenting shareholders. A final call on this will be taken in February 14 board meeting.”
