Proposed sale of 33.12% equity shares of Prime Focus by Credit Suisse to PFL's promoters is blatant abuse: RCAP Group

Mumbai (IANS) The proposed sale of 33.12% equity shares of Prime Focus Ltd. (PFL) by Credit Suisse (CS) to the PFLs promoter group at Rs 44.15 per share is a blatant abuse of the purported rights by CS under certain lending agreements with RCAP Group.

A RCap statement said the proposed sale is being attempted privately and clandestinely between 2 foreign entities, without any open, fair and transparent process being conducted to realise the true value of the shares and disregarding basic norms of conflict of interest.

The proposed sale price is at a substantial altogether unwarranted discount to the intrinsic value of Prime Focus Ltd's shares.

The proposed transaction violates several laws, rules and regulations, including inter alia SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, Foreign Exchange Management Act, 1999, and the extant RBI guidelines.

"As legally advised, RCAP Group will seek all appropriate judicial and regulatory intervention to protect the interests of lenders and shareholders of PFL and Reliance Capital Ltd.", the statement said.