International BusinessDalmia-owned GHCL postpones board meeting
Sanjay Dalmia-owned Gujarat Heavy Chemicals (GHCL), a major producer of soda ash, has postponed its board meeting scheduled for today.
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While the company did not elaborate, sources close to the development said the management took the decision following an “open offer” by minority stakeholder Pramod Jain in Golden Tobacco, another Dalmia-owned company.
“One-third directors have to resign by rotation at each AGM (annual general meeting) and some seek reappointment. It’s possible that GHCL fears that Jain, being a large shareholder, will object to the reappointment of some shareholders,” said the source.
Jain, owns 5 per cent in GHCL, recently made a hostile bid to acquire another 25 per cent in Golden Tobacco, in which he holds a 6.47 per cent stake. He has also had a stint at GHCL, where he was a director for three-four months. He was also rumoured to have attempted a hostile bid for GHCL.
Earlier this April, a Securities and Exchange Board of India (Sebi) order had barred Dalmia, Managing Director Ravi Shanker Jalan and Company Secretary Bhuwneshwar Mishra from trading on Indian exchanges following charges of inflating promoters’ shareholding in quarterly filings to exchanges. Following the order, Jain had accused GHCL’s promoters and top management of “dubious” dealings. He had also called for an inquiry by the Company Law Board and the Ministry of Corporate Affairs. GHCL executives had rubbished his allegations.
The company had earlier announced that the board would meet on November 14 to consider audited annual accounts (including consolidated financial results) for financial year ended March 31 and consider payment of dividend.