Man Industries resolve feud by splitting businesses
The feud between the Mansukhani brothers, today got resolved by dividing the businesses between the siblings
Mumbai: The feud between the Mansukhani brothers, promoters of the infra company Man Industries, today got resolved with the company board agreeing to divide the businesses between the siblings by spinning off the realty and construction verticals from the flagship company.
“Yes, the demerger has happened. The infra projects business (comprising the real estate and construction verticals) will be taken care of by my brother J C Mansukhani,” Man Industries chairman Rameshchandra Mansukhani said.
“The family settlement entered into with J C Mansukhani has put an end to the disputes and misunderstandings,” he said.
“As part of the agreement, the flagship saw pipes business will continue to remain under me,” he said.
Jagdish C Mansukhani, the younger sibling, is a director of the company and reportedly owns 28 per cent in it while the elder R C Mansukhani is the chairman with a 35 per cent holding.
The Board of the company, which met today, has also approved the arrangement of the demerger.
“The Board observed that the pipe business and real estate construction/development business each have tremendous growth and profitability potential and therefore both the business activities require focused leadership and management attention,” it said.
Man Infraprojects, to be headed by J C Mansukhani, will also be listed in due course and the board also approved a shares allocation formula, arrived at with help from consultancy firm KPMG.
The Board agreed upon a 1:1 ratio of allocation under which a shareholder will get one share in Man Infraprojects for every share held in Man Industries, the company said in a statement.