Comments
Distressed asset acquirer Mr P.K. Ruia-led Ruia group appears to have landed in trouble in France.
In September, Ruia acquired 100 per cent interest in French precision auto-part maker Preciturn — having nearly 210 workers in two factories at Monistrol-Sur Loire and Thiers — but could not take control of the company in the face of stiff opposition from the local management and workers unions.
A series of reports in French media in September and October; quoted the company President (Chairman), Mr Burthey Mathieu, and the Union leaders accusing Mr Ruia of not living up to his promise of finding working capital and necessary investments in Preciturn.
Mr Mathieu, however, did not respond to queries from Business Line .
‘Arm-twisting tactics'
Mr Ruia, however, accused the management and unions at Preciturn of resorting to “arm-twisting tactics” allegedly with the tacit approval from the erstwhile owner. He had also denied the existence of any such “investment commitments”.
Background
“Having acquired shares by September 5, we (Ruia Group) sent a team for on-the-spot assessment of the operations on September 15. Having invited us for a meeting on September 21 afternoon, the seller, management and workers ganged up in demanding immediate payment towards the company's coffers to which we disagreed.
“In retaliation, they (Perciturn management and workers) gheraoed us without food and water till late in the evening, when police finally escorted us out,” he said.
Mr Ruia said the issue has been taken up with both the Indian embassy and well as the French authorities.
Road ahead
Meanwhile, the fate of his acquisition is hanging in the balance. “In France, the President (of a company) wields a lot of power. It requires concurrence of both the buyer and seller to change the President. While we have done our bit, well before the fateful September 21 meeting; the seller has so far escaped doing so.
“We are trying to make things work in our favour. Else, we will be left with the option of filing for insolvency,” Mr Ruia said.
Turkish deal scrapped
Meanwhile, the Ruia group's agreement for acquisition of €180 million (approximately Rs 1,100 crore) Istanbul headquartered automotive sealing manufacturer — Standard Profil AS — stands “cancelled”.
A Bancroft Private Equity-led consortium entered into “a binding agreement to sell 100 per cent of Standard Profil A.S.” at an undisclosed sum to the Ruia Group in May.
According to Mr Ruia, the agreement was cancelled due to “technical issues”.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.