Cementrum I.B.V.

SAT-appeal

• SEBI held payment of non-compete fee to selling promoters of Mysore Cements Ltd not justified and sought inclusion in negotiated offer price.
  Set aside SEBI direction to add non-compete fee per share to negotiated price for lack of reasons · Direct SEBI to pass fresh reasoned order after affording appellant opportunity of hearing
  Appeal: Appeal No. 146 of 2006 disposed on 19.11.2007 with no order as to costs
• Challenge to SEBI’s direction requiring the acquirer to include Rs.14.50 per share non-compete consideration in the open-offer price, increasing it from Rs.58 to Rs.72.50 per share.
  Appeal challenged SEBI’s order dated 14 January 2008 directing payment of Rs.72.50 per share plus interest to public shareholders. · Tribunal considered the legality of SEBI’s scrutiny of non-compete consideration under Regulation 20(8).
  Appeal: Appeal No. 28 of 2008, decided by SAT on 8 July 2008; text provided is incomplete and does not state final disposal terms.