National Company Law Tribunal (NCLT) will buy 22,27,000 shares of Philips India which are held by non-promoter public shareholders.
If NCLT Kolkata approves, Philips India would be able to buy its minority shareholders leading to 100 per cent control of its Indian arm by its global parent Koninklijke Philips NV and its associate outfits.
This buyout scheme has been filed under section 66 of the companies act as ‘capital reduction’ and the buyout process has valued Philip India at Rs 3,321 crore or 560 a share.
Philips India has bagged the approval of 99.6 per cent of its shareholders which they were trying to get earlier but could not bag. The value of shares has grown five times since 2004. in 2004 the value was 105, in 2008 it was 260 and today it has touched to 560.
“While we continue to oppose the price as we believe the company and, particularly, its properties are hugely undervalued, the resolution has been passed through as there is little point in putting up the fight for long. The company has already disposed off its key business of lighting,” a minority shareholder said.