The last few steps in ending the long drawn out Bajaj family feud were taken on Thursday when the faction comprising cousins Shekhar, Madhur and Niraj, and led by Bajaj Auto chairman and managing director Rahul Bajaj, consulted their solicitors and formulated an agreement letter to be sent to estranged brother Shishir Bajaj.
"We are hopeful that the dispute will be settled by the end of February or the latest by March 31," Rahul Bajaj told Business Standard.
The media had reported that the Bajaj family would meet to sort out matters but no meeting between the two factions had been scheduled to be held, he said.
Their letter is being sent in response to a letter dated December 7 from Shishir Bajaj indicating his willingness to settle the dispute as per the terms and conditions agreed upon in June 2003.
"Shishir has sent a nice letter to us agreeing to the terms and conditions of the memorandum of understanding signed in June 2003," Rahul Bajaj said.
He was referring to the over 15-page MoU which was signed in June 2003 after S Gurumurthy of the Swadeshi Jagran Manch mediated the dispute between the two factions.
The agreement had not been concluded because Shishir Bajaj had raised a few additional points. While Shishir Bajaj was unavailable for comment, his son Kushagra declined to comment on the matter.
As per the agreement, the valuation of Bajaj Auto has been agreed upon at around Rs 475 per share, against the current scrip price of Rs 1,084.60.
The valuation of Bajaj Hindustan has been agreed upon on the basis of Rs 67 per share (Rs 10 face value), the scrip's price on March 31, 2003. Bajaj Hindustan shares (face value: Re 1) closed at Rs 100.85 on Thursday.
"Today, taking advantage of my presence in Mumbai, we (the Rahul Bajaj faction) met our solicitors and decided to send a reply to Shishir Bajaj's letter. The agreement will be reached at as per the terms of the MoU signed last year," Rahul Bajaj said.
"It is not an easy task. It is a family settlement involving many companies with four brothers against one brother. It is not a settlement between two company workers, "Bajaj added.
As per the terms of the MoU, Shishir Bajaj will take complete control of Bajaj Hindustan and Bajaj Consumercare by buying out his brother Rahul Bajaj and cousins in these two companies.
Rahul and his cousins, in turn, will buy out Shishir's 5.7 per cent in group flagship Bajaj Auto. Shishir Bajaj is expected to get around Rs 225 crore (Rs 2.25 billion), in addition to Rs 51 crore (Rs 510 million) to be transferred through trusts.
Shishir Bajaj
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Will take complete control of Bajaj Hindustan and Bajaj Consumercare by buying out brother Rahul Bajaj and cousins in these two companies
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Shishir is expected to get around Rs 225 crore, in addition to Rs 51 crore to be transferred through trusts
Rahul Bajaj
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Rahul and his cousins will buy out Shishir's 5.7 per cent in group flagship Bajaj Auto
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