MUMBAI|KOLKATA: Some minority institutional investors of Akzo Nobel India opposed the firm's proposal to merge three unlisted group firms with itself at a packed shareholders meet in Kolkata but the proposal may end up getting passed.
The court convened meeting on Tuesday of Akzo Nobel India - the maker of Dulux paints, witnessed a 'spirited debate' from shareholders ranged for and against the merger of the three unlisted entities with the Indian listed subsidiary. The proposal was put to vote and the results will be announced in 48 hours.
Representatives of insurance majors LIC, GIC and SBI mutual fund and Birla Sun Life mutual fund participated in the meeting.
The highlight of the meeting was the quiet presence of a representative from Asian Paints, who by virtue of holding 5% of their arch rival's equity also cast its vote. While company officials declined to disclose how they voted, observers attending the meeting believed that the very fact that Asian Paints attended the meeting can be construed that the vote was against the merger resolution.
An Asian Paints official confirmed that a representative had indeed attended the court convened meeting of Akzo Nobel in Kolkata. "We voted in the interest of the shareholders of Asian Paints Ltd," an official said.
Akzo Nobel officials said that over 800 proxies were cast with 73 members attending the Akzo meet. Shareholders referred to the Economic Times reports on several occasions that had brought the concerns out in the open of minority shareholders against the Akzo Nobel's merger proposal.
Amit Jain, managing director, Akzo Nobel India said with this the company is moving away from a frequent restructuring mode to one of organic growth. "We'll become a one stop coatings provider."
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