Investment in shares is like the playing cards game of Flash " Teen Patti " . Promoters have seen their cards. Non Promoter / Public Shareholders are Playing "BLIND "
January 18, 2011
There are around 8,159 remaining non promoter shareholders who together own 2.42% stake in Cadbury India.
We strongly feel that Government of India and SEBI should amend the laws so that Companies using their " brute majority " are not able to " compulsorily " buy out minority shareholders at what they perceive to be the " fair value " . Delisting may be OK . But a High Court Order for selective share reduction ( of Non Promoter Share holders ) is a different matter altogether.
1 ) If a company wishes to buy back compulsorily then in the voting procedure the majority holder ( promoter ) should be debarred from voting . Only the small share holders should have the Right to vote on that particular Resolution .
2 ) As in the case of land acquisition , the Company should state valid reasons for acquisition of remaining shares ( In Cadbury 's case the remaining 2 odd % share holders can , frankly , in no way alter the Company 's policies.) Only a few more Annual Reports are to be despatched and a few more chairs at the AGM . ( Cadbury India Limited 's shares were delisted w.e.f 20-01-2003 )
3 ) There should be a soletium ( a premium over and above the fair value to compensate for compulsory buy out ) of 50 %
If the Company feels that the rate it is offering is " FAIR " then it should , also , be willing to offer to sell its entire majority holding at that rate . The minority share holders ( and other Indian share holders ) should have a Right of Pre emption at that " FAIR " rate. For example if Cadbury India Limited feels that Rs.2000 is a " fair rate " then Indian shareholders in general should be given an opportunity to form a SPV ( Special Purpose Vehicle ) Company which ( with suitable debt equity Leveraged Buy out ) and buy at the same rate the majority shares from the Promoters. A period of 6 months should be kept for giving this opportunity to Non Promoter Indian shareholders
However , we sincerely wish that Cadbury India Limited offers its remaining loyal share holders " Kuchh Meetha " and in New Year 's " Shubh Arambh " withdraws this move.
For Shakti Met-Dor , please click :-
Cadbury India Limited
Shakti Met-Dor Limited ((subsidiary of German giant Hormann Beteilgungs Gmbh )
JAB APNA HISSA MANGEY GEY
IK BAGH NAHI; IKK KHET NAHIN
HUM SAARI DUNIYA MANGEY GEY
( Josh Malihabadi )