INDIA BUSINESS WORLD - JUNE 1st - JUNE 30th - 2008
GULU BUYS 33.3% IN GUVISO, ENDS FAMILY DISPUTE
IT’S turning out to be a season of business family settlements. Close on the heels of the Lakhani family settling on a business split, the Mirchandanis have finally closed the chapter on a 2-year long dispute. As per the transaction, Mirc Electronics chairman Gulu Mirchandani has bought 33.3% stake held in the name of his sister-in-law in Guviso Holdings, the holding company which in turn owns 53% in public listed firm Mirc, for Rs 85.6 crore.
This takes his shareholding to 66.6% in Guviso which has now been transferred to a separate holding entity, Gulita Securities. The balance stake of Guviso is with his brother-in-law Mirc Electronics MD Vijay Mansukhani. The consumer electronics and appliance company operates through brands such as Onida and Igo.
As reported earlier, the deal which was scheduled to be closed in April had got delayed. Some reports suggested that a bounced bank cheque which was meant to be a token sum as a part of the intra-group transaction could even derail the family settlement. Mirc Electronics is promoted by the Mirchandani family. Besides minority stakes owned by promoter group individuals, the group held 52.74% through the holding firm Guviso. The three promoters, brothers Sonu, Gulu and Gulu’s brother-in-law Vijay Mansukhani owned 33.3% stake each in Guviso.
As reported in the media, one of the brothers Sonu wanted to exit the firm and had even initiated dialogues with external investors including a few private equity firms and other rival consumer durable makers. Gulu on the other hand did not wish to bring in an external investor into the firm.
After almost two years of negotiations, the brothers had come to an agreement in April this year where Gulu Mirchandani was to buy out the shares held in the name of Sonu’s wife Soni in a deal valued at around Rs 111 crore. The final deal has been struck at a 24% discount to the price which was announced in April this year.
In March 2008, Sonu Mirchandani’s sons had transferred their shares to their mother. Post this transaction, Soni Mirchandani held 33.3% in Guviso. This stake has now been acquired by Gulu.
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