Cadburys Delisted in Jan 2003 offering a pittance of Rs 500 to minority shareholders…Nine years later it yet stubbornly fights in court those 8149 shareholders who did not sell back…Last Offer price was Rs 1900…Court Appointed Valuer arrives at Rs 2014…Shareholders want Rs 2500….now check out 3M India as a delisting candidate

Cadburys Delisted in Jan 2003 offering a pittance of Rs 500 to minority shareholders…Nine years later it yet stubbornly fights in court those 8149 shareholders who did not sell back…These minority shareholders hold 2.4% of the equity…..On September 30,2009,Cadburys had offered Rs 1340 when E & Y had valued the share at Rs 1740…….The Last Offer price by Cadbury was Rs 1900…Court Appointed Valuer E & Y has now  arrived at a DCF Valuation of Rs 2014 as directed to do so by the Mumbai High Court earlier this month …Shareholders want Rs 2500 

http://www.dnaindia.com/money/report_cadbury-dashes-minority-hopes-again_1570878

Clearly after India liberalised Foreign Direct Investments in most sectors,allowing even 100% Foreign Parent Holding,most listed MNCs have already ,like Cadburys,delisted or considering to delist…Clearly they want our Market not our Shareholders !…..but it is important that they pay a fair or sweet price to buy back shares held by minority shareholders…but Cadburys is stubbornly,and I sense with some degree of condescending arrogance too,serving up some bitter chocolate through the years

Cadburys offered just Rs 500 in 2003…..they were forced to raised it to Rs 1340 and then even Rs 1900 !….just think….Rs 500 in early 2003 at a CAGR of 10% (assumed risk free rate) would have become just @ Rs 1100 in eight and a half years……at E & Y new DCF Valuation of Rs 2014,the CAGR works out higher at 18%…so clearly holding out for such a long time has favoured the shareholders who yet hold the shares

Methinks we are near some compromise on Offer Price now and matter should be settled soon at anywhere between Rs 2014 and Rs 2500…To twist the company ad line….Jaldi kuch Meetha hoh jayega

Blog Readers may recall that Cadburys have faced other problems too in India…they were fighting Corruption charges…and when worm infested Chocolates of their Brand were found,they had to retain for their Advertising initiative ,the credible and famous actor Amitabh Bachhan, to reach out and assure the Indian Public that Cadbury choclates were subjected to stringent quality testing and were of top quality

While top world companies are delisting in India and thus depriving Indians of the opportunity to hold some top quality MNC companies in their portfolio,it is heartening to note that Shareholder Activism in India is strengthening…MNCs cannot get away with low Offer Prices….earlier this year BOC delisting initiative suffered as Price demanded,and rightly so, by shareholders was way higher than what the company had indicated as the price read more