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Prabhat Dairy gets shareholder nod for sale of its business to Lactalis

99 per cent public institutions voted against the resolution but the promoter group and non-institutional investors voted in favour

Samie Modak  |  Mumbai 

has obtained shareholders’ nod to sell its dairy business to French firm Groupe The company on Thursday made the voting results public.

The resolution for “sale of entire investments (equity and preference) in its subsidiary to Tirumala Milk Products, and sale of dairy business undertaking of the company to and Tirumala Milk Products” obtained 92 per cent votes in favour.

Proxy advisory firms had termed the resolution as controversial and recommended to vote against it.

ALSO READ: Proxy firm asks shareholders to vote against Prabhat's sale of dairy biz

Interestingly, 99 per cent public institutions voted against the resolution but the promoter group and non-institutional voted in favour. “While promoters were expected to vote in favour of the transaction, the resolution could have been defeated had all the public shareholders voted against it,” said a fund manager.

Sunfresh Agro and the dairy business of Prabhat collectively account for 98 per cent of the company’s consolidated Some had raised concerns over the future of after the sale of its dairy business, as it contributed to bulk of its

“The company has not disclosed any future plans that how the company will proceed with remaining 2 per cent business… How the company will survive/grow when almost nothing remains in the company,” proxy advisory firm Stakeholders Empowerment Services (SES) had said in a note.

First Published: Thu, March 28 2019. 20:26 IST
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