Private equity major Actis and original promoter group of Nilgiri Dairy Farm are in the midst of conciliatory discussions to jointly and amicably steer the Bangalore-based retail firm's operations. The Mudaliar family, which hauled up Actis before the Company Law Board (CLB), is currently holding rapprochement talks with Actis leading to a possibility of them hiking stake in the company, while taking a direct interest in the management once again, said sources familiar with the situation.Another major issue between Actis and the original promoter group has been the sale of the company's hotel properties to Sabari Hotels. While the original promoter thinks this money should be distributed to shareholders in form of dividends, Actis intended to invest these further into the expansion of the retail business. UK-based Actis, along with Singapore's GIC Special Investments, acquired the stake in Nilgiri Dairy Farm, the back-end firm of the retail operations, to circumvent the FDI restrictions. The Nilgiri owned stores were spun-off as franchisees before Actis took over the company in 2006. Full Story
