Why The Children Investment Fund’s exit from Coal India matters
The Children’s Investment Fund finally has bowed out. The activist institutional investor has sold its entire stake in Coal India, reports The Financial Times.
The fund sold its holding in the world’s biggest coal miner in the recent months, said the report citing people familiar with the development.
Two days back The Economic Times reported that the fund is likely to exit the coal producer as its stake had fallen to a negligible level. With the FT’s report, it is almost certain that the fund has exited the Indian company. (TCI has not confirmed the development.)
The development holds much significance in the Indian context.
The fund, which was once the second biggest shareholder in Coal India with about 2 percent stake, hit the news headlines in India in 2012 after it took on the government for controlling coal prices, which it pointed out was negatively impacting the state-run company’s profitability and shareholder value.
In March 2012, TCI had served a notice to the Indian government for alleged violations of international treaties related to its investments in the state-owned firm.