Financial Daily from THE HINDU group of publications
Wednesday, Mar 16, 2005
Financial Daily from THE HINDU group of publications Wednesday, Mar 16, 2005 |
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Corporate
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Corporate Disputes Firodias to stay invested in Bajaj Auto Our Bureau
Pune , March 15 THOUGH there is a tussle between Bajaj Auto Ltd and the Firodia-run Bajaj Tempo Ltd over the name change of Bajaj Tempo, Mr Abhay Firodia of Bajaj Tempo has decided to stay invested in Bajaj Auto Ltd. The Firodias hold about 10 per cent in Bajaj Auto. "The Firodias have decided to stay invested in Bajaj Auto Ltd, and there is no reason for the Firodia family to change its opinion today," said Mr Abhay Firodia, Chairman and Managing Director, Bajaj Tempo Ltd (BTL). He noted that this investment has been a good one since the formation of Bajaj Auto Ltd. He said the Firodias have also decided not to purchase shares in BTL held by the Bajaj group, or from any other person, as the present promoters' holding is sufficient and, hence, the question of valuation of BTL shares does not arise. Looking at BTL, Mr Firodia said it was vigorously pursuing plans for manufacture of HCVs, new technology engines and vehicle aggregates at a cost of approximately Rs 350 crore. BTL is a near debt free company and is in a position to access the required resources without having to induct a foreign equity partner, he pointed out. He, however, stressed that BTL had no proposals or plans to induct MANNutzfahrzeuge as equity partner. There have been no discussions or negotiations in this regard. "The question of percentage of stake or the method of allotment by preferential allotment, etc., to MAN therefore does not arise," he added. MANNutzfahrzeuge, the German auto giant, is a technical collaborator and not an equity partner in the project. The expansion plans are being implemented at BTL's plant at Pithampur, near Indore in Madhya Pradesh. There are no plans to set up a new independent facility. Meanwhile, as per the directive received from the Regional Director, Western Region, Ministry of Company Affairs, Government of India, Mumbai, the company has proposed to change its name to Force Motors Ltd. The directive is issued under Section 22 of the Companies Act, 1956, whereby it is mandated that change in name should be carried out by an ordinary resolution. The approval of an ordinary resolution requires only a simple majority. The extraordinary general meeting is to be held at Akurdi, Pune on April 5.
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