CLB stays Wendt's shareholders meet

CHENNAI: The Company Law Board on Wednesday passed an interim injunction against conducting any shareholders’ meet of Wendt India.
Joint venture partner Carborundum Universal, a Murugappa Group company, moved the CLB bench opposing a possible acquisition of Winterthur Technologies by 3M (Schweiz) AG. Carborundum Universal and Winterthur Technologies hold 40% stake each in Wendt India.
The global acquisition could have a consequential impact on Wendt India, the petitioner said. In an earlier filing , Carborundum had stated that the potential indirect acquisition of Wendt India shares by 3M would amount to a breach of the foreign direct investment (FDI) regulations in India.
The potential indirect acquisition of Wendt India shares by 3M (through the acquisition by 3M of shares of Winterthur) constitutes a breach of the shareholders ’ agreement executed between Carborundum and Wendt GmbH under which Carborundum has been vested with a first right of refusal to buy the Wendt India shares, the Murugappa group company said.
Wendt is a manufacturer of superabrasive grinding wheels and tools in India with a 35% market share.