Chocolate and confectionery maker, Cadbury India has rejected the 30% premium recommended by the court-appointed valuer Ernst & Young on share valuations fearing that it might jack up the share prices further upwards.
The company had informed the Bombay High Court about its objection with the 30 per cent premium recommended on share valuation of Rs.1340 suggested by earlier valuators was not acceptable to them. Earlier, valuators Bansi Mehta & Co and SSPA & Co had suggested per share valuation at Rs.1,340.
Cadbury is considering to buyback 2.5% shares owned by minority shareholders, who were not satisfied with the offer made by the company and felt the valuation was low and did not offer value for money at such low rates.
Following to the minority shareholder’s appeal in the Investors Grievances Forum to oppose low valuations, the court appointed Ernst & Young as fresh valuers.
In the latest development the Bombay High Court has asked counsel of both sides to give their submissions on the matter on Wednesday.
According to Investors Grievances Forum (IGF), Cadbury has 8,088 shareholders in the country and abroad. Of them, 800 are minority non promoter shareholders.
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