The Hindu Business Line : Blackstone in talks with Maharashtra Scooters?

Is Blackstone negotiating with Western Maharashtra Development Corporation (WMDC) for its 27 per cent stake in Maharashtra Scooters (MSL)? According to market circles, Blackstone has scaled up its initial offer of Rs 600 per share couple of weeks ago to around Rs 650 per share now. Blackstone is understood to be ready to go up to Rs 700 pers hare.

Mr Akhil Gupta, country chief of Blackstone, however, was not available for comment. Mr A.K. Shaikh, Secretary of WMDC, told Business Line that he was not aware of such a development.

Mr Rahul Bajaj, former Chairman of MSL, said: “I am not aware of this, and if it is true, and I am surprised to hear of it since it is the Maharashtra government that went to court. We have the first right of refusal, and they have not made an offer to us.”

Mr Ashok Chavan, Industries Minister of Maharashtra, said the “matter of valuation of the MSL shares is sub-judice”. The Minister also said he was unaware of “any move to sell the shares” (of MSL) to Blackstone.

Bajaj Auto, the junior JV partner, owns 24 per cent in MSL. It wanted to buy-out WMDC at a price of Rs 115, arrived at by the arbitrator. WMDC moved Bombay High Court against the valuation in 2006. Bajaj Auto, which has been trying the legal process, based on the JV agreement, is now understood to be pushing for an early settlement.

MSL is crucial for the Bajaj family as it has large holdings in BAL (3.35 lakh shares), Bajaj Auto Fin, Bajaj Hindusthan and other group companies. At current market prices, the total worth of these investments in Bajaj outfits is around Rs 1,000 crore.

The stock shot up Friday by over 10 per cent to close at Rs 297 with a quantity of 86,106 shares on the BSE.

Jayanta Mallick
Alka Kshirsagar