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

The proposed sale of 33.12% equity shares of Prime FocusLtd. (PFL) by Credit Suisse (CS) to the PFLs promoter group at Rs 44.15 pershare is a blatant abuse of the purported rights by CS under certain lendingagreements with RCAP Group. 

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

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

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

 "As legally advised, RCAP Group will seek allappropriate judicial and regulatory intervention to protect the interests oflenders and shareholders of PFL and Reliance Capital Ltd.", the statementsaid.