The Hindu Business Line : B.K. Birla- Kumar Mangalam combine secures Century Textiles control

PILANI Investments & Industries Ltd, the holding company of the several outfits of Birla factions, on Thursday saw its control pass over jointly to Mr B.K. Birla and his grandson Mr Kumar Mangalam Birla. But more importantly, with a buyout deal of Mr G.P. Birla and Mr S.K. Birla in Pilani, the control of Century Textiles passed on to the combine also.

The BK-Kumar combine bought out Mr G.P. Birla and S.K. Birla Group's 31 per cent stake in Pilani.

Mr B.K. Birla, confirming the development, told Business Line on Thursday that the price per share of Pilani has been decided at Rs 1,500. This has raised the BK-Kumar combine to 51 per cent in Pilani, which holds around 35 per cent stake in Century Textitles, out of the total promoters' stake of 44.14 per cent.

Mr B.K. Birla also said the roughly seven per cent stake of Pilani is held by K.K. Birla Group. "He is not selling his to us. But has assured his full voting support to us," Mr B.K. Birla said. With Mr K.K. Birla's support of the effective voting rights for the BK-Kumar combine in Pilani goes up to 58 per cent.

Pilani also has minority stakes in several other Birla faction outfits, including that of Mr G.P. Birla and Mr S.K. Birla. But only in Century Textiles, Pilani held the controlling stake. The considerations for the stake sale would be paid through a number of installments, the sources confirmed.

The stock of Century Textiles on Thursday shot up by 6.63 per cent to Rs 335 on the NSE, with a traded quantity of over 18.21 lakh shares changing hands. Public holding in Century was 23.29 per cent as on June 30, while mutual funds held around 9.19 per cent, banks, insurance companies & FIs had 7.54 per cent, private corporate bodies 8.27 per cent and FIIs had 6.19 per cent of the total paid-up capital of Rs 93.05 crore.

The deal kept out M.P. Birla Group stake as it stands "disputed" after the death of Ms Priyamvada Birla, said sources close to B.K. Birla Group.

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