Hirco adjourns EGM amid stiff shareholders resistance

Giving in to the pressure from shareholders, Hirco Plc, an investment vehicle of Mumbai-based realtor Hiranandani group, has adjourned its extraordinary general meeting scheduled to be held on January 16.

The EGM was to be held to discuss Hirco's proposed merger with two other companies of the Hiranandani Group -- Hirco Developments and Hiranandani Investment Companies. However, the proposed merger had received stiff resistance from shareholders as the restructuring plan was likely to massively dilute their interests and effectively cede control to the Hiranandani family.

In a regulatory filing, Hirco Plc said that the board felt it essential that sufficient time be allowed for all views to be considered and discussions to be held with shareholders.

"Therefore, the board of Hirco proposes to adjourn the January 16th meeting until further written notice," the AIM-listed company said in the filing.

The company further said that over the past week Hirco Plc had met and spoken with a number of shareholders, including Laxey Partners, which holds 10 per cent stake in the company.

"And following the discussions it was apparent that there are variety of views about the proposed merger and how best to address Hirco's share price discount," the filing added. The board also thanked shareholders for their patience and assistance in these discussions.

On December 18, the board had approved the merger through which the company would acquire the investment companies that own the current development projects -- the township developments at Panvel and Chennai and Hirco Developments, the Hiranandani development company contracted to carry out the development and marketing of the projects.