The Hindu Business Line : Actis representative on Punjab Tractors board resigns

ONE of the two representatives of private equity firm Actis on the board of Punjab Tractors Ltd (PTL) is learnt to have put in his resignation on Friday.

This decision of Mr Donald Peck, who is partner at Actis, seems to have been in the wake of the company's board accepting Sumitomo Corporation's offer to purchase 15 per cent of PTL's stake in Swaraj Mazda Ltd (SML). Actis holds 25 per cent stake in PTL.

Industry sources said that the resignation could be connected to an earlier letter that Mr Peck had written to financial institutions raising corporate governance issues pertaining to the sell-off of PTL's stake.

In the letter he had conveyed that Actis was not in favour of dilution of PTL's equity in SML and that the sell-off of equity was not in the interest of the shareholders.

Actis currently has a stake of about 18 per cent in SML.

At a board meeting on Friday, PTL, which holds 29.04 per cent stake in SML, agreed to sell 15 per cent of its holding at Rs 400 per share (aggregating to a consideration of about Rs 63 crore).

Following the completion of the transaction, Sumitomo would emerge as the single largest shareholder in SML with a stake of over 25 per cent, as it already holds 10.4 per cent stake in it.

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