September 03, 2014

DENSO INDIA PROPOSES COMPULSORY BACK BACK FROM MINORITY SHAREHOLDERS



It is very surprising that despite opposition from minority shareholders of Cadbury India, Shakti MetDor, Nirma etc to proposals for Compulsory Buy back , yet another MNC , Denso India( formerly SRF Nippon Denso ) has proposed Compulsory Buy Back of Minority- Non Promoter Shareholders by approaching Delhi High Court.

In the AGM dt. 23/09/2014 Resolution No. 8 for this Compulsory Buy Back

Highlights of the  Compulsory Buy back

1 ) Same price of Rs. 145 as was paid to those who voluntarily tendered their shares.

2 ) While Minority Shareholders are to be thrown out compulsorily there is going to be  preferential allotment to Promoters 
  
3 ) In the Explanatory Statement this compulsory extinguish of shares is being projected as being in the interests of those shareholders who shares are to be compulsorily cancelled as if a favour is being done to them.

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IT IS THE SHAREHOLDERS WHO CAN BEST DECIDE WHETHER IT IS IN THEIR INTEREST TO HOLD SHARES OR SELL THEM .THE MANAGEMENT OF DENSO INDIA CANNOT TELL THEM WHAT TO DO.

http://www.rareindianshares.info/2011/01/cadbury-india-limited.html
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Oppose All Forcible Cancellation of Non Promoter Shares

All those who attempt to forcibly buy out small shareholders ( at their own dictated rates as Valuations are done by their own appointees ) should , instead ,follow Don Corleone ( GODFATHER )'s dictum

" MAKE HIM ( i.e. Shareholders ) AN OFFER THAT HE 
CANNOT REFUSE '
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General Warning : Investment in shares can be injurious to your WEALTH.

Caution :The blog writer has personal/ family members' holdings in this company ,so please make suitable "provisions " for likely over optimism .

( All comments / facts given in good faith. Please recheck all points before taking any investment decision. No responsibility with this blog / writer )

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