UltraTech gets court relief ahead of Century’s cement biz takeover
Just before the Kumar Mangalam Birla group goes for voting on Wednesday for the demerger of cement division of Century Textile and Industries and merging it with UltraTech, a major stumbling block has been removed.
The Calcutta High Court has rejected a plea of MP Birla group owner, the Lodhas, which wanted an injunction on the demerger process, claiming that the demerger would hurt its interest. The Lodhas have a significant stake in Pilani Investment and Industries Corporation Ltd, which in turn own a stake in Century Textile.
Punjab Produce and Trading Co, an investment company held by the Lodhas, owns 17.52% in Pilani Investment, the Kumar Mangalam Birla-owned holding and investment entity of the BK Birla group, and had argued that the demerger would leave Century poorer with its most profitable division gone.
The demand, however, has been rejected by the court thus paving the way for the demerger.