Financial Daily from THE HINDU group of publications
Monday, Feb 06, 2006
Financial Daily from THE HINDU group of publications Monday, Feb 06, 2006 |
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Restructuring Corporate - Corporate Disputes Ambani brothers clash again — Mukesh refutes Anil's charges on non-transfer of business control Our Bureau
Mumbai , Feb. 5 THE Ambani brothers have started another round of war of words. The main issue now is almost the same as that of the first round: control of the group's businesses. Mr Anil Ambani on Sunday alleged that even eight months after the announcement of the division of business between the two groups, RIL, the flagship company controlled by Mr Mukesh Ambani, has not transferred the management and control of the four demerged companies to the Anil Dhirubhai Ambani Group (ADAG). Minutes after the allegations at a hurriedly called press briefing at the Reliance Centre, RIL came out with a statement that the company had completed allotment of shares of the four demerged companies, the record date for which was January 25, 2006. Refuting the charges, the RIL statement said: "More than 23 lakh shareholders have received shares of the demerged companies - Reliance Communication Ventures Ltd, Reliance Natural Resources Ltd (RNRL), Reliance Capital Ventures Ltd, and Reliance Energy Ventures Ltd." The second round of battle began with the release on February 3 of a gas supply agreement signed by RIL and RNRL. The agreement is for supply of gas from RIL's KG block to RNRL for the Patalganga and Dadri power projects. ADAG had questioned the agreement saying that it had deviated from the originally agreed terms between the two groups. Besides, it was alleged that RNRL is still controlled by RIL as its ownership had not been transferred to ADAG. In a statement, ADAG also alleged that besides the gas supply agreement, two other agreements - non-compete and brand agreements - have been executed while the four companies are still under RIL control. This has been done despite dissent being communicated by ADAG nominees. "RIL's stance, that management and control of the four companies can be handed over to ADAG only after listing of the companies, is contrary to the clear language and intent of the Scheme of Arrangement." The group has also alleged that RIL has been controlling the procedural aspects of the listing process of the four companies. RIL's view that the submission of all information and details regarding the entire listing must be completed under its control reflects an "unreal reluctance" to recognise the reality that these companies now belonged to ADAG, the group said. RIL has been further accused of delaying the listing of the companies, as a result of which "incorrect and misleading information" is being communicated to the BSE and NSE in the draft information memoranda of the four companies. It is alleged that the final information memoranda for the companies have not been provided to its nominees and that RIL has been widely circulating it to the media.
Related Stories: More Stories on : Restructuring | Corporate Disputes
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