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| Edited By: Promit Mukherjee |Source: |Updated: Sep 15, 2017, 01:51 AM IST
Kasliwal brother brings family feud to public domain, says move will hurt him
MUMBAI: The decision of S Kumars Nationwide Ltd (SKNL) to demerge its retail business to Brandhouse Retail Ltd has been opposed by a minority stakeholder, bringing to light the long-standing family feud in the Kasliwal family.
Alok Kumar Kasliwal, uncle of SKNL managing director Nitin Kasliwal and half brother of S Kumar Group chairman Shambhu Kumar Kasliwal, told DNA Money, “The demerger is actually a well-planned strategy of the family of my half brother to dislodge me of my minority stake in the company.” He owns 1.8% stake in the promoting company.
“Their main objective is to remove me from the entire operations of the company once they list Brandhouse retail Ltd as a separate entity,” he said.
Negotiations amongst the warring brothers have been inconclusive so far, Kasliwal said, adding, he might initiate legal action if the stalemate continued.
Jagadish Sheth, president and chief financial officer, SKNL, however, said the proposed demerger was approved by 99% of equity shareholders and 100% of preference shareholders at a meeting held last Thursday.
Promoters hold a 44.50% stake in SKNL and will hold around 56.87% in the new company. One share of the new company is being offered for every five shares of SKNL held.
Meanwhile, Aspi Bhesania, owner of cost accountancy firm Aspi Bhesania and Co and a shareholder of SKNL, told DNA Money, “Through the demerger, the promoter group is actually trying to increase its control over the new company and that too at the cost of the interests of shareholders.”
According to him, if the promoters had a share of 44.5% in SKNL, then they should have the same share in the new company as well. However, after the demerger is completed, the promoters will have a share of close to 56% and the public will be left with the remaining. The promoters also plan a rights issue for Brandhouse Retail Ltd, Bhesania added.
