B K Offers To Buy Out V Ks Stake In Modi Rubber

Adding a new twist to the ongoing Modi Rubber saga, Bhupendra Kumar Modi has offered to buy out the stake of his brother Vinay Kumar Modi in the company. The two parties are now trying to arrive at a mutually acceptable price, sources told Business Standard.

Sources in financial institutions confirmed the move and said that the acquisition price is still being worked out. The sources added that the institutions, being the largest shareholder in Modi Rubber with a 44 per cent stake, are required to give their final nod to the deal.

The two brothers together own over 35 per cent of the shareholding in Modi Rubber after their open offer for a 35 per cent stake in the company last year at Rs 90 per share. Though the Modis claimed that their offer was fully subscribed, LIC went to courts against the sale of its 12 per cent stake to the offer. Before the offer, the two brothers held a 12.53 per cent stake.

As per records, while VK Modi directly held 0.02 per cent of Modi Rubber