Shareholders of Dalmia Bharat have almost unanimously passed three special resolutions that together give private equity player KKR 8.45 per cent of the cement-maker.
In a note to the exchanges, Dalmia Bharat said: “We are pleased to inform that the special resolution to consider issuance and allotment of up to 75 lakh equity shares of ₹2 each fully paid-up on a preferential basis to KKR Mauritius Cement Investments, according to Clause 44(3) of the Listing Agreement, has been passed with 99.94 per cent votes in favour of the resolution.”
The shareholders also passed two other resolutions, which raised the limit of an inter-corporate loan to ₹3,000 crore from the current ₹1,200 crore (needed for a cash payout to KKR) and an amendment to the Articles of Association to restrict KKR’s ability to transfer the shares it receives in Dalmia Bharat.
Advisory’s cautionEarlier this week, proxy advisory Stakeholders Empowerment Services published a note asking shareholders to vote against the resolution since it said it was meant to provide an indirect exit to KKR’s investment in Dalmia Bharat’s subsidiary Dalmia (Cement) Bharat (DCBL) in exchange for cash and equity from the parent company.