According to reports, Mitsui took control after having bought the UK-based company, Finsider International Company, which had the majority holding in Sesa Goa. It is argued that rights of the minority shareholding has been directly affected as Mitsui did not make a public offer while acquiring the company.
The fear of the minority shareholders comes on the eve of the board meeting of Sesa Goa on November 7, where the new board is likely to spell out the future course of the company. According to information available, the two new Mitsui directors (who have been appointed onto the board) were to arrive in India on Tuesday night.
Senior Sebi officials said that with the new takeover draft not yet operative, its legal department was considering the appropriate action to be taken.
Mitsui, according to reports, has bought over Finsider International, a wholly-owned subsidiary of ILVA Mining NV, which is now owned by a consortium of companies led by the Riva group. The shareholders have appealed that this was a clear cut case of a takeover under the provisions of the Sebi Substantial Acquisition of Shares and Takeover regulations.
It has also been argued that the acquisition of 51 per cent of Sesa Goa by Mitsui is a case of acquisition of shares or voting rights as envisaged by regulations 10,11 and 12 of Chapter III of the said regulations.