Saturday, January 04, 2020

Rahul Bhatia-Rakesh Gangwal dispute: IndiGo's extraordinary general meeting on January 29

New Delhi: The dispute between IndiGo co-founder-promoters Rahul Bhatia and Rakesh Gangwal is now coming to a head. An extraordinary general meeting (EGM) of InterGlobe Aviation (IGA), holding company of the airline, will be held on January 29 at Gangwal Group’s request to amend provisions of article of association, like the one giving the two founders first right of refusal (RoFR) if one of them wants to sell his stake.
The Gangwal Group has 36.6% stake in IndiGo while Bhatia Group, along with Bhatia family-controlled InterGlobe Enterprise (IGE) have about 38% stake in India's biggest airline by domestic market share. The Gangwal Group reportedly want clauses like RoFR to be removed, a move seen by the industry as a prelude to diluting or selling its stake in the airline. Another article is that the transferring shareholder would not be entitled to transfer shares without prior written consent of the non-transferring shareholder.
Qatar Airways has for long expressed a desire to buy stake in the airline. Recently Qatar Airways Group chief executive Akbar Al Baker had told TOI he would be “very keen (to pick up stake) in the future (once the promoter-founder issues are resolved).” The two founder-promoters have been at loggerheads since last July when Gangwal approached SEBI over corporate governance issues in IndiGo revolving around Bhatia Group’s control over the airline. They have taken each other to courts in the US and for arbitration in London on the issue.
03/01/20 Saurabh Sinha/Times of India
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