Hoping to restore peace after years of wrangling inside and outside courts over division of the Bajaj family empire, brothers Rahul and Shishir are expected to sign a settlement in the next 10 days but are wary of talking about it lest something should go wrong.
Signaling that the fighting factions of family patriarch, Rahul Bajaj, and younger brother Shishir Bajaj have closed in on a settlement, the two sides informed stock exchanges about an agreement which will entitle the latter control of sugar major Bajaj Hindusthan Ltd.
People familiar with the development said a final agreement was expected to be signed in the days to come but both sides were keeping it extremely confidential to ensure nothing went wrong this time around.
When contacted Rahul Bajaj declined to comment on the development. Shishir Bajaj's side was also equally tight-lipped.
In a notice to the National Stock Exchange, Shishir Bajaj said he would acquire shares in Bajaj Hindusthan that Rahul would buy from family members and group companies -- Bachhraj & Co and Jamnalal Sons.
As per the notice to the NSE, Rahul would acquire over 4.1 crore shares amounting to 29.2 per cent stake in the sugar major by way of inter-se-transfer of shares among the promoters through market transactions.
These shares would be acquired at the market price as on December 30, the notice said.
The acquired shares, along with 0.21 per cent already held by Rahul as well as the holdings of six other family members amounting to 29.62 per cent, would then be transferred in favour of Shishir.
"The acquisition price per share is nil, in terms of the family arrangement cum settlement and on account of distribution of the estate of Late Kamalnayan Bajaj," the notice added.
After the transfer of shares, Shishir will have 32.47 per cent stake in Bajaj Hindusthan.
The Bajaj family feud first hit headlines in 2002, with Shishir alleging his elder brother Rahul of trying to oust him from the chairmanship of Bajaj Sevashram, one of the group holding companies.
This culminated with Shishir group approaching the Company Law Board seeking redressal in March 2003. The board had suggested the warring sides to reach an amicable solution and in June 2003, an understanding was reached brokered by S Gurumurthy and D S Mehta.
As per the agreement, Shishir's side was supposed to get control of Bajaj Hindusthan and Bajaj Consumer Care Ltd, while giving up claims in other group firms such as Bajaj Auto Ltd.
It, however, didn't last long and the parties were back to the courts. In 2007, BAL, under the control of Rahul Bajaj faction, bought 3 per cent stake in BHL from open market thereby increasing the tension further.
Arguments continued this year at the CLB and the two sides were advised to come up with an amicable solution, which proved to be elusive till the developments of the last two days.
