Bajaj Auto to buy MSL stake for Rs 151.63 per share

Our Corporate Bureau
20 January 2006

Bajaj Auto Ltd has confirmed that it will buy out the 27 per cent stake of Western Maharashtra Development Corporation Ltd (WMDC) in Maharashtra Scooters Ltd (MSL) for Rs 151.63 per equity share with a face value of Rs 10.

MSL has been jointly promoted by Bajaj Auto and WMDC. Though WMDC, which wanted to exit from MSL had offered its stake to Bajaj Auto, the deal had been stuck due to the inability of the two to agree to the valuation.

The price at which the shares would be sold was then referred for arbitration by Bajaj Auto and WMDC on December 29, 2003, to sole arbitrator, retired Justice Arvind V Savant.

On January 14, 2006, the arbitration proceedings concluded with Justice Savant's award of a value of Rs 151.63 per share for WMDC's total holding of MSL's 3,085,712 shares amounting to Rs 46.78 crore.