The Bombay High Court has asked Cadbury India and its minority shareholders to consider by July 5 the recommendation given by Ernst & Young for a 30 per cent premium to the company's valuation, than what was fixed by two independent valuers earlier.
Janak Dwarkadas, the counsel for Cadbury, and Pradeep Sancheti, the counsel for the shareholders, would inform the High Court about their views on the recommendation by July 5.
High Court-appointed auditors Ernst & Young had, on June 10, submitted a report in a sealed cover to the High Court, recommending a 30 per cent premium to the company's valuation.
Hearing an application filed by the Investors Grievances' Forum, a body for protection of small investors, Justice S J Kathawala had asked Ernst & Young on April 15 to independently value shares of Cadbury India, whose promoters proposed to acquire 2.5 per cent minority shareholding.
Cadbury shareholders had opposed the valuation of shares based on a report prepared by valuers M/s Bansi Mehta and Co and M/s SSPA and Co, which had set each share at Rs 1,340.
According to IGF, the company has proposed a share capital reduction scheme, whereby 97.4 per cent majority promoter shareholders planned to acquire 2.5 per cent minority shareholding at a price fixed by the valuers.
IGF said Cadbury has 8,088 shareholders in India and abroad. Of them, 800 are minority non-promoter shareholders.
At an extraordinary general body meeting conducted by the Company, only 79 of the over 8,000 shareholders were present.
