The Hindu Business Line : Zandu-Emami row: HC asks CLB to pass orders in 15 days

Mumbai/Kolkata, Aug. 7 The corporate tussle between ayurveda companies Zandu Pharmaceutical and Emami Ltd seems to have shifted to the Company Law Board.

The Bombay High Court on Thursday asked the CLB to pass its order in 15 days on the dispute between the two companies, legal counsel for one of the parties told Business Line.

Consequently, Zandu’s Annual General Meeting scheduled to be held this Saturday (August 9) now stands adjourned till the CLB passes its order, the source said.

Zandu had approached the Bombay High Court, asking for the CLB to look into the issue. Zandu alleged there had been a breach of the takeover code and non-compliance with MRTP laws.

The Mumbai-based Parikh family was unhappy after the Vaidyas (Zandu’s co-promoter family) sold their 24 per cent stake to Kolkata-based Emami.

Emami too is said to have petitioned Zandu’s promoters on not having received the agenda of the scheduled AGM.

Responding to today’s development, Mr Harsh Agarwal, Emami’s Executive Director, told Business Line: “It would be inappropriate to comment on the subject which is sub judice. But, we are very happy because chances of assertion of corporate democracy have brightened”.

In May, Emami announced that it had bought the Vaidyas’ stake in Zandu through a share purchase agreement, taking Emami’s total stake in Zandu up to 27.5 per cent.

Zandu’s promoter family holds over 20 per cent stake as on June 30. To stave-off Emami’s attempts to get a foot-hold in its company it had approached market-regulator SEBI and later, the CLB. However, the CLB reportedly advised Zandu’s promoters to take it up with SEBI.

Meanwhile, SEBI is yet to approve Emami’s open offer for 20 per cent stake in Zandu, slated to have opened on July 24.

Zandu’s shares were up around 5 per cent, at Rs 18,109, while Emami stock was a little over one per cent at Rs 242, on the BSE. But traded quantity in both the counters was very small.