Maha Scooters minority share-holders seek recast

The minority shareholders of Maharashtra Scooters (MSL) have recommended a restructuring of the automobile company before the divestment of the government's 27 per cent holding in favour of the Bajaj group.

The minority shareholders and the company's two promoters (Western Maharashtra Development Corporation and Bajaj Auto) are at loggerheads over the valuation of MSL.

R M Mehta, chairman, Maharashtra Scooters Minority-shareholders' Association (MSMA), said, "The restructuring is necessary for unlocking the true value of the MSL shares."

Bajaj Auto holds 24 per cent in MSL, while WMDC holds 27 per cent and the balance 49 per cent is held by the public.

As part of the government's disinvestment programme, WMDC's stake was to be transferred to Bajaj Auto.

However, Bajaj Auto had offered Rs 75 per share, while the government appointed agency Crisil valued it at over Rs 200 a share. ICRA valued it at Rs 300-Rs 350 per share.