Warring Bajaj brothers reach truce

Signalling the end of a six-year long dispute, the warring Bajaj brothers have reached an agreement wherein family patriarch Rahul Bajaj has agreed to give control of Bajaj Hindusthan to younger brother Shishir.

In a notice to the National Stock Exchange on Monday evening, 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.

According to the notice to 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 the Shishir group approaching the Company Law Board (CLB) seeking redressal in March 2003.

The board had suggested the warring sides to reach an amicable solution.