Reliance Capital raises objection to PFL stake sale by Credit Suisse

Industry:    2020-12-29

Debt-ridden firm Reliance Capital on Monday raised objection to the proposed 33.12 per cent stake sale of Prime Focus (PFL) by Credit Suisse to PFL’s promoter group at Rs 44.15 per share.

Anil Ambani’s Reliance Group company Reliance Capital termed the proposed transaction as a blatant abuse of the purported rights by Credit Suisse under certain lending agreements with the RCAP Group, the company said in a statement.

However, Reliance Capital did not share the details of the “blatant abuse of the purported rights”.

Reliance Mediaworks Financial Services Private Limited, an RCAP Group company, is one of the investors in PFL — promoted by Naresh Malhotra and Namit Malhotra.

Reliance Mediaworks holds 10.57 per cent stake in the PFL.

The company’s statement further alleged that the proposed sale is being attempted privately and clandestinely between 2 foreign entities, without any open, fair and transparent process being conducted to realise the true value of the shares and disregarding basic norms of conflict of interest.

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