HYDERABAD: The Greater Hyderabad Municipal Corporation has expressed its inability to purchase the L&T Infocity Limited equity share holdings in the Hyderabad International Trade Expositions Limited (Hitex) situated at Madhapur in the city.
The L&T Infocity Limited has mooted disinvestment of its shares from equity holdings in the Hitex. It has 98.85 lakh equity shares (each of Rs 10) accounting for 58.11 percent holding in Hitex and served notice of Rights of First Refusal (ROFR) to purchase its equity holding in Hitex to all the shareholders of Hitex.
The National Academy of Construction (NAC) has 30 lakh shares (17.64 pc), Hyderabad Metropolitan Development Authority (HMDA) 20 lakh (11.76 pc), GHMC 11.25 lakh (6.61 pc) and the department of tourism 10 lakh shares (5.88 pc) in Hitex.
GHMC officials told that they were not interested in purchasing the shares offered by L&TIL for want of funds and capacity to handle such issues.
The L&TIL had issued notices of ROFR for purchasing the equity holdings in Hitex to all the above shareholders a few months ago.
Already, NAC and HMDA have expressed their inability to buy the shares as do not have the needed resources and the municipal corporation has now shown disinclination to buy shares as they do not have the required Rs 67.30 crore.
The issue was referred to the GHMC Standing Committee on Thursday and was adjourned to the next meeting for want of more information.
Recently, L&T Infocity Limited has requested the GHMC to communicate the decision on ROFR before June 10. The GHMC has written a letter to the principal secretary (R&B) to intimate its decision to it at the earliest and the decision is awaited from the department.
NAC has requested the state government to consider providing funds of Rs 67.30 crore to it to purchase the shares but the government decided not to provide any budgetary support to NAC.
The GHMC has written several letters to the government to communicate the decision taken on the issue of exercising the Right of First Refusal but the response is awaited.
