The Burman Group has rebutted claims made by US-based investor Digvijay Gaekwad about making an open offer for Religare Enterprises, stating that he did not make a competing offer within 15 days of the Burman Group’s public statement on October 4, 2023. In a statement on Sunday, the Burman Group said that Gaekwad has not made a competing open offer but has merely sought Sebi’s permission to do so, which is barred under the current regulations.
“Digvijay L Gaekwad has not made any competing open offer. In his correspondence, he has only made a Request for Permission to Sebi seeking their permission to make a competing open offer,” said the spokesperson for Burman Group. “Gaekwad had to make the competing offer, if at all, within 15 days from the date of public statement, which was made by the Burman Group on October 4, 2023 but he did not do so. Over 400 days have now elapsed for entitling anyone to make a valid competing open offer”.
The statement has come after a US-based investor Danny Gaekwad Developments & Investments has made a proposal to pick up 26 % stake in the financial services firm at a higher price than offered by entities promoted by the Burman family. In a letter written to the Sebi Chairperson, posted by REL, Danny Gaekwad Developments & Investments has requested the regulator to permit the US-based entity to submit a competing open offer.
The Burman Group said that the request lacks substance, bona fides, and any indication of financial capacity to purchase the proposed shares while stressing that REL’s leadership is recklessly disseminating this baseless claim to mislead public shareholders.
“The fact that this purported letter, lacking any bona-fides has been disseminated by REL to the stock exchanges, without undertaking any diligence, reeks of connivance, deceit and gross recklessness amongst the executive leadership at REL,” said the spokesperson. “It is clearly done with the aim of misleading the public shareholders of REL on whether to participate in the open offer”.
Burmans’ open offer for Religare Enterprises to acquire an additional 26% stake from the open market would commence on January 27 following the regulatory approvals. The open offer, at Rs 235 a share, is for the acquisition of up to 90 million fully paid-up equity shares of face value of Rs 10 each.
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