Two Asian Paints promoters have resigned as directors of Atul Choksey-controlled Apcotex Lattices, thereby severing one of the last few links between themselves and Choksey.
Mahendra C Choksi and Abhay Vakil represented the Asian Paints promoters on Apcotex and they have now quit
The resignations were submitted and accepted sometime earlier this year and now the board is fully controlled by Choksey and his associates. Apcotex Lattices is a chemicals company promoted by the Choksey family, and the three Asian Paints promoters - Danis, Vakil and Choksis - have between five to 10 per cent stake in it.
When Atul Choksey walked out of Asian Paints in August last year, there was speculation that the remaining three promoters would exit Apcotex Lattices as well. Ashwin Dani, Asian Paints vice-chairman, confirmed the development yesterday and said they have not sold their stake in Apcotex.
"We have a small, insignificant holding and it really does not make much of a difference. The directors quit because Atul Choksey has a large shareholding. It would be wrong to say the resignation is a prelude to the sale of our stake," he said.
Apcotex Lattices is a Rs 44.07-crore company with an eight-member board headed by Atul C Choksey as chairman and Dr S Rengachary as managing director. Choksey has also vacated his office in Asian Paints.
He plans to expand the capacity at Apcotex Lattices which makes synthetic rubber.
Atul Choksey had split with the other three promoters in August last year when he sold his 9.1 per cent stake to ICI Plc through Kotak Mahindra Capital Company (KMCC). The other promoters fought a long, bitter battle to prevent ICI from taking over the company and succeeded when the Foreign Investment Promotion Board (FIPB) refused to clear ICI's application.
Subsequently, ICI had no other option but to sell part of its stake. It is looking for buyers for the remaining 4.6 per cent. Dani said yesterday that they are still interested in buying this stake.
