The Hindu Business Line : TMB issue: Pact signed for share transfer

Mr Ramachandra Adityan (middle) signing the agreement papers with Mr A. Subramanian, Director, Sterling group, for acquiring the stake in Tamilnad Mercentile Bank Ltd held by the Sterling group in the presence of the Deputy Prime Minister, Mr L.K. Advani, in New Delhi on Monday. - V. Sudershan

Chennai , Feb 16

REPRESENTATIVES of the Nadar community entered into an agreement on Monday with Mr C. Sivasankaran, Chairman of Sterling group, to buy 34 per cent of the equity of Tamilnad Mercantile Bank from him.

Eight individuals of the Nadar community signed the agreement with nominees of Mr Sivasankaran. The agreement was signed in the house of the Deputy Prime Minister, Mr L.K. Advani, where Mr Venkaiah Naidu, General Secretary, Bharatiya Janata Party, was also present.

According to the agreement, Mr Sivasakaran will sell 95,418 shares of the bank to the eight individuals, for a consideration of Rs 130 crore.

According to sources in the know, the money will have to be paid to Mr Sivasankaran by December this year. However, the transfer of shares will not wait for the money to be paid, it will be effected immediately. But the shares will be pledged back to Mr Sivasankaran and will be released only after the Rs 130 crore is paid.

The buyers of the shares will have voting rights, as soon as the transfer is effected, sources said.

With this, the entire 67 per cent stake in the bank held by Mr Sivasankaran, will come into the hands of the Nadar community. Earlier, members of the community, through the Nadar Mahajana Bank Share Investors' Forum had bought 34 per cent stake for Rs 81 crore.

As the tussle over the ownership was going on, the health of the bank began to show signs of deterioration, which got the RBI concerned.

It is understood that, Mr S. Gurumurthy, the convenor of the Swadeshi Jagran Manch, put in a word to Mr Advani and Mr Naidu to speak to Mr Sivasankaran, so that the dispute could be ended.

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