Financial Daily from THE HINDU group of publications
Wednesday, Feb 01, 2006
Financial Daily from THE HINDU group of publications Wednesday, Feb 01, 2006 |
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Corporate
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People Actis managing partner rejoins Punjab Tractors board Neha Kaushik
New Delhi , Jan. 31 THE Managing Partner of private equity firm Actis, Mr Donald Peck, has rejoined the board of Punjab Tractors Ltd, in which the private equity firm has a stake of about 29 per cent. Mr Peck had resigned from the board of the tractor company in June last year. Industry sources had then indicated that the resignation could be connected to a letter Mr Peck had written to financial institutions raising corporate governance issues in the sell-off of Punjab Tractors' stake in Swaraj Mazda to Sumitomo Corporation. Following the transaction, Sumitomo emerged as the largest shareholder in Swaraj Mazda with a 41 per cent stake. Actis did not favour dilution of Punjab Tractors' stake at that time and had stated that the sell-off of equity was not in the interest of shareholders. Actis had two nominees on the tractor company's board. According to industry sources, the standoff between Actis and the current management of Punjab Tractors has only intensified in recent months and Mr Peck rejoining the board could be seen in that light. The Delhi-based Burman family, which owns the Dabur Group of companies, had in November picked up about 11 per cent stake in Punjab Tractors. The Burman family would soon have one nominee on the company's board. Though no official confirmation was forthcoming, industry sources point out that Actis may try to muster the board's support to bring about a change in the company's top management. Currently, LIC is the second largest shareholder in Punjab Tractors with a stake of 15 per cent. Meanwhile, Punjab Tractors at its board meeting on Tuesday also decided to invite two new independent directors to join the board.
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