Emami in talks with Zandu Pharma over management sharingAugust 25th, 2008 - 8:37 pm ICT by IANS
Kolkata, Aug 25 (IANS) City-based fast moving consumer goods manufacturer Emami Ltd, which holds 27.5 percent stake in Zandu Pharmaceuticals Works Ltd, is in talks with the pharma company’s promoters for a management sharing arrangement, a top official said here Monday.Zandu’s promoters, the Parikh family, had earlier approached the Bombay High Court against Emami after the latter purchased 24 percent stake in the company from the Vaidya family, co-promoters of Zandu.
“We have been talking to the Parikhs about sharing management control, though the talks are not yet fruitful,” Emami director Harsh Agarwal told reporters on the sidelines of the annual general meeting of the company.
“About eight to nine percent stake of Zandu bought by us were not dematerialised, which are yet to get transferred to Emami,” Agarwal added.
Emami picked up 3.5 percent of Zandu shares from the market before buying the 24 percent stake of the Vaidya family in a deal announced May 30. But the Parikhs refused to sell it out.
Earlier this month, the Zandu-Emami case was transferred to the Company Law Board (CLB) by the Bombay High Court.
Emami is expecting an order of the CLB on the case any time now.
“We expect an order of the Company Law Board on the Zandu case any time,” Agarwal said.
Emami reported a net profit of Rs.110 million ($2.56 million) for the first quarter of the current fiscal, an increase of 12 percent over the same period last year.
Profit before tax grew by 14 percent at Rs.130 million.