Usha Martin To Seek Shareholder Nod For Business Sale To Tata Steel

- Oct 12, 2018-

Business Standard reported that Usha Martin will seek shareholder nod on November 10 for sale of its steel business to Tata Steel. The resolution will be placed as a special business before the shareholders for approval at an extraordinary general meeting. The report quoted a source as saying that “The support of the Basant and Prashant Jhawar promoter faction, a 25% shareholder in Usha Martin, which had not given consent to the deal at the company’s board meeting that approved the sale to Tata Steel, would be the key.”

However, days after the agreement, the father-son duo had issued a statement saying that they were encouraged by the Tatas signing a business agreement with the current management of Usha Martin. But at the same time, they raised several questions on the utilisation of funds.

It is not clear at this point whether there would be voting for the deal, some people close to the development said.

The requisite majority for the special resolution to go through is 75 per cent of the votes.

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