AGI Greenpac flags flawed CCI nod to INSCO’s Rs 2,800 crore HNG takeover
PTI
Synopsis
AGI Greenpac has challenged the approval of Independent Sugar Corp's takeover of Hindusthan National Glass. AGI claims the approval by the Competition Commission of India was flawed. They allege that INSCO filed unilaterally, violating regulations. AGI argues the approval is invalid and seeks a review. The Supreme Court had previously addressed the matter.
By Shilpy Sinha, ET Bureau
AGI Greenpac has written to India’s antitrust regulator questioning an approval for a nearly Rs 2,800-crore takeover deal that would allow its rival, an Africa-based investor, to buy the insolvent Hindusthan National Glass and Industries (HNG) in an administered ownership change.
According to AGI, the rules clearly state that both companies involved in a deal must jointly file for approval. But in this case, only INSCO filed the notice.
The move comes just days after the Supreme Court directed that INSCO’s resolution plan in the HNGIL insolvency matter can be considered only if valid CCI approval existed as of October 28, 2022. AGI is now arguing that since the antitrust approval was flawed, the resolution plan itself is invalid.
AGI has argued that the approval, obtained via the green channel route, is “void ab initio” owing to INSCO’s unilateral filing, a violation that undermines the legitimacy of the entire transaction.
AGI has sent copies of the complaint to both the CoC (Committee of Creditors) and the resolution professional, asking them to investigate the matter.
The CCI’s green channel route allows faster deal clearances if there are minimal risks to competition. But AGI claims that such fast-track approval was wrongly given here, without meeting the required conditions.
AGI has requested CCI to urgently review the green channel approval granted to INSCO since the committee of creditors of HNGIL is required to proceed with the resolution plan in two weeks, as per the May 16 direction of the Supreme Court.
In the May 16 order, the Supreme Court had dismissed AGI Greenpac’s review petition in the HNG insolvency matter, while recording the assurance of Abhishek Manu Singhvi, counsel for INSCO, that INSCO will match AGI’s offer. As per this commitment, INSCO will match AGI’s cash offer to financial creditors, which pushes total payout to Rs 2,752 crore - Rs 357 crore more than the original offer.
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AGI’s letter to the Competition Commission of India (CCI), dated June 4, claimed the approval given to Independent Sugar Corp (INSCO) for the HNG deal was not done as per rules. AGI said that INSCO received a green channel approval from the CCI for acquiring the Kolkata-based insolvent glassmaker, and that the approval allegedly failed to adhere to stipulated procedures.According to AGI, the rules clearly state that both companies involved in a deal must jointly file for approval. But in this case, only INSCO filed the notice.
The move comes just days after the Supreme Court directed that INSCO’s resolution plan in the HNGIL insolvency matter can be considered only if valid CCI approval existed as of October 28, 2022. AGI is now arguing that since the antitrust approval was flawed, the resolution plan itself is invalid.
AGI has argued that the approval, obtained via the green channel route, is “void ab initio” owing to INSCO’s unilateral filing, a violation that undermines the legitimacy of the entire transaction.
AGI has sent copies of the complaint to both the CoC (Committee of Creditors) and the resolution professional, asking them to investigate the matter.
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The CCI’s green channel route allows faster deal clearances if there are minimal risks to competition. But AGI claims that such fast-track approval was wrongly given here, without meeting the required conditions.
AGI has requested CCI to urgently review the green channel approval granted to INSCO since the committee of creditors of HNGIL is required to proceed with the resolution plan in two weeks, as per the May 16 direction of the Supreme Court.
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In the May 16 order, the Supreme Court had dismissed AGI Greenpac’s review petition in the HNG insolvency matter, while recording the assurance of Abhishek Manu Singhvi, counsel for INSCO, that INSCO will match AGI’s offer. As per this commitment, INSCO will match AGI’s cash offer to financial creditors, which pushes total payout to Rs 2,752 crore - Rs 357 crore more than the original offer.
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