Mumbai (Maharashtra) [India], December 28 (ANI): Anil Ambani-led Reliance Capital said on Monday the proposed sale price of Prime Focus Ltd's (PFL's) shares is at a substantial altogether unwarranted discount to its intrinsic value.
Last week, PFL's promoter group said it entered into an agreement with Credit Suisse for acquisition of 33.12 per cent stake at a consideration of Rs 463 crore.
The transaction was to initiate an open offer by promoters for another 26 per cent stake from public shareholders at the same price of Rs 44.15 per piece.
The shares that Credit Suisse is to acquire were previously held by Reliance Mediaworks Financial Services Pvt Ltd and were pledged to Credit Suisse.
"The proposed sale of 33.12 per cent equity shares of Prime Focus Ltd by Credit Suisse to the PFL's promoter group at Rs 44.15 per share is a blatant abuse of the purported rights by Credit Suisse under certain lending agreements with RCAP Group," said Reliance Capital in a statement.
"The proposed sale is being attempted privately and clandestinely between two foreign entities, without any open, fair and transparent process being conducted to realise the true value of the shares and disregarding basic norms of conflict of interest."
The proposed transaction violates several laws, rules and regulations, including inter alia SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act 2015, Foreign Exchange Management Act 1999 and the extant RBI guidelines, said Reliance Capital.
"As legally advised, RCAP Group will seek all appropriate judicial and regulatory intervention to protect the interests of lenders and shareholders of PFL and Reliance Capital Ltd." (ANI)