3i to approach CLB over Krishnapatnam port stake.

The battle among private equity investors and Indian promoters keep going on for a while. In a latest development, UK-based investor 3i Group is taking stringent moves against promoters of Krishnapatnam Port Co Ltd. (KPCL), the developer and operator of leading port at Krishnapatnam in Andhra Pradesh. According to people in the know, 3i is approaching the company law board (CLB) against the management, alleging that promoters have refused to stick to the agreement signed in 2009 for buying back stake.

Sources said the 3i Group had exercised its option in September 2013 to sell its minority stake, bought for Rs 800 crore in 2009, in Krishnapatnam Port Company to the Hyderabad-based CVR Group, which refused to buy it. The option expired in March 2014. 3i has started proceedings in court. It will also approach the company law board soon, sources said. At present, 3i holds 10% in KPCL.


BS