Sun TV Share Price: Shares of Sun TV Network Ltd tumbled as much as 5.25 per cent in early trade on Friday, June 20 after a fresh feud between the Maran brothers sparked concerns over control and governance at the media conglomerate. However, the shares rebounded, absorbing some of the early losses, after the company’s management issued a clarification to the Exchanges today, stating that the dispute is “purely personal” and it has “no bearing on the business”.
“The matters alleged in the articles does not have any bearing on the business of the Company or its day-to-day funtioning and being the family matter of the Promoter are purely personal in nature,” the media company said in its filing.
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At 1:25 PM, Sun TV share price was at Rs 598.80 apiece on the NSE, down 2.18 per cent from its previous close. In early trade, it had slipped to an intraday low of Rs 580 apiece.
Sun TV Network consists of 37 television channels in seven languages, direct-to-home broadcast service, 69 FM radio stations, three daily newspapers, six magazines and two sports franchises.
Dayanidhi Sends Legal Notice To Brother Kalanithi
According to reports, former Union Minister and Lok Sabha MP Dayanidhi Maran on June 10 sent a legal notice to his elder brother, Kalanithi Maran, Chairman of Sun Group, accusing him of large-scale farud to seize control of Sun TV Network.
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The notice also named seven others, including wife Kaveri Kalanithi, chartered accountants, financial consultants, senior company officials, and close associates for allegedly aiding and concealing the transactions.
According to the legal notice, the dispute involves claims of fraudulent share allotments, use of forged documents, and lapses in corporate governance.
Sun TV Family Feud: Explained
The alleged fraud dates back to September, 2003, when Kalanithi was allotted 12 lakh shares, amounting to 60 per cent stakes of the company, in Sun TV at a nominal Rs 10 per share. Dayanidhi, however, claims the shares were actually worth over Rs 3,000 apiece and that the allotment was made without a proper valuation, shareholder approval, or consent from the original promoters. The notice also claims this happened just days after their father, and former Union Minister, Murasoli Maran, was flown back to India in a critical condition. Murasoli Maran was in a coma and on life support from late 2002 until he died in November 2003.
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Dayanidhi also alleged that their father's shares were transferred to their mother, Mallika Maran, even before his death was officially recorded or any legal heir documents were issued. This, he claims, paved the way for Kalanithi to acquire more shares in 2005 at below-market rates.
Dayanidhi further alleged that in 2005, Kalanithi declared a massive Rs 174 crore dividend and used the funds to acquire a 50 per cent stake held by MK Dayalu, wife of former Tamil Nadu Chief Minister M Karunanidhi, in group companies. He also claimed that dividends and share allotments were used to benefit close associates, including Kalanithi’s wife, Kaveri Kalanithi, currently Joint MD at Sun TV, and others who were later placed in top roles at Sun-affiliated companies like SpiceJet and Sun Direct.
