New Delhi, Feb. 7: The company law board (CLB) has allowed the Agarwals to buy out the 65 per cent stake held by the Maheshwaris in Hindi newspaper Amar Ujala.

The CLB has, however, imposed a lock-in period of three years for the buyout deal and made it clear that the Agarwals “cannot, either directly or indirectly, facilitate or negotiate or shop around with any third party for three years to either acquire the ownership or control of the company”.

Amar Ujala Ltd, including A&M Publications Pvt Ltd, is valued at Rs 390 crore.

Agarwals currently hold a 35 per cent stake in Amar Ujala. Ajay Agarwal, an editor of Amar Ujala, said they would abide by the CLB ruling. “We will keep our commitments and make full payments as directed by the board,” said Agarwal. Sources said Rs 13 crore has already been deposited in an escrow account according to the directions of the CLB.

Atul Maheshwari, current managing director of Amar Ujala, was not available for comments.

The CLB order also said there will be a lock-in period of three years on the shares of the Maheshwaris, which will be purchased by Agarwals. CLB has also mandated that the Agarwals hold at least 51 per cent in the company at any point of time for the next three years, even if an initial public offer is launched. CLB also said the Agarwals can launch an IPO only after they have paid up entirely for the Maheshwaris’ shares.

The CLB has also ruled that the Agarwals will get the management control in the company only after it pays at least 40 per cent of total amount.

The CLB order said the Agarwals should make full payment within nine months of the order.

The board has also said since the management of the company will be handed over to the petitioners only after the receipts of 40 per cent of the consideration, there shall be no closure or launch of new editions.