Basant-Prashant Jhawar faction opposed Tata Steel-Usha Martin deal

The Basant-Prashant Jhawar promoter faction of Usha Martin, having 25.5 per cent of the equity, did not give their consent at the meeting on Saturday of the board of directors to Tata Steel’s offer for acquiring the company’s steel business for an amount of up to Rs 47 billion.

Basant Kumar and son Prashant Jhawar had joined the meeting over a video conference. Six independent directors, the State Bank of India nominee, the managing director and the joint managing director consented, said sources close to the company.

The father-son duo had earlier raised various issues on the use of funds and how the dues to unsecured creditors, employees and pending liability to the exchequer would be met.

A source close to the company said the final offer was made at 6 am and was valid till 4 pm.