Shareholder power play at Pula Steel

Friday, July 14, 2017

A battle is brewing over the troubled steel manufacturing plant

Pula Steel is headed for a change of ownership as it emerges that founders of the company, the Verma Family will not participate in a P28 million capital call, a development that will dilute their shareholding in the firm.

Ahead of today’s deadline for the three shareholders, Verma family, Citizen Entrepreneurial Development Agency (CEDA) and Wealth Generations, to raise the funds through equity and debt injections, Mmegi BusinessWeek has gathered that the Indian family investors will not inject more funds into the troubled steel business as they have declared the capital call process unprocedural .

This will pave way for CEDA to become the new majority shareholders in the business and inject the funds, which will be used to restart the mothballed business as well as pay a portion of the P100 million creditors’ bill.

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