Financial Daily from THE HINDU group of publications
Sunday, Feb 01, 2004

News
Features
Stocks
Cross Currency
Shipping
Archives
Google

Group Sites

Corporate - Courts/Legal Issues
Money & Banking - Private Banks


Dhanalakshmi Bank to take possession of part of Devaki Hospital

Sanjiv Shankaran

Chennai , Jan. 31

THE Chief Metropolitan Magistrate, Chennai, has passed an order under the Securitisation Act to allow The Dhanalakshmi Bank to gain possession of a part of Devaki Hospital on February 2.

The order comes in the wake of a management struggle between the hospital's nephrologists and the former Managing Director, Ms Chitra Chokalingam. Simultaneously, the hospital has had to deal with a financial crunch that had led to delayed salary payments last year.

Currently, a three-member managing committee that includes Ms Chokalingam handles the hospital's affairs. The Madras High Court appointed the committee after the hospital's governing board revoked Ms Chokalingam's power as a Managing Director last year, and the dispute was brought before it.

The managing committee is expected to continue till the confusion surrounding last year's open offer to shareholders made by the nephrologists' team is cleared. The nephrologists made an open offer for 40 per cent of the equity at Rs 11 a share last September.

When the offer was made, they had already gained control of about 10.21 per cent of the company's equity.

Officials at Indbank, the merchant banker to the offer, said the acquirers bought about 23.07 per cent of the equity during the offer.

Consequently, their equity stake, at about 34 per cent, exceeded Ms Chokalingam's stake of about 26 per cent.

Some of the shares sold in open offer are in the form of physical certificates. Their transfer requires the consent of the managing committee, said hospital sources. The committee, however, has not yet given its consent, leading to uncertainty about the status of the offer.

More Stories on : Courts/Legal Issues | Private Banks | Corporate Disputes | Medical Institutions & Hospitals

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page



Stories in this Section
Easier ECB norms come into effect


Dhanalakshmi Bank to take possession of part of Devaki Hospital
GMR Technologies EGM clears investments in ING Vysya Life
IOC to buy Premier Oil stake in Assam block
Corporate India plans big on capex



The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2004, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line