The battle for management of Religare Enterprises Ltd. (REL) has taken a brand new twist, as Florida-based businessman Danny Gaekwad insists his bid for a controlling stake within the firm is way from over.
Regardless of the Securities and Change Board of India (SEBI) returning his letters, addressed to Chairperson Madhabi Puri Buch, on Tuesday, Gaekwad stays steadfast in his pursuit of a competing provide.
“This just isn’t over but”, Gaekwad insisted and suggesting that the battle for Religare remains to be unfolding. “I’ll do my greatest to guard my curiosity and Religare shareholders’ pursuits”, Gaekwad informed businessline when requested about his subsequent steps on SEBI’s latest transfer.
No hostile takeover bid
Gaekwad stated that he needs to be seen as a “Pal of REL Board and REL shareholders” and that he’s not trying to do a hostile takeover. “I’m prepared to work carefully with the present REL Board and shareholders. I’m a price purchaser. I see large worth in REL even right this moment and am prepared to supply the next value to public shareholders.”
Regardless of SEBI returning his letter, Gaekwad doesn’t interpret it as a “rejection” of his request to put a competing bid. As a substitute, he plans to strategy the regulator once more by following the required procedural necessities, together with submitting the prescribed type together with the requisite charges.
Competing provide
Gaekwad has put forth a suggestion of ₹275 per share, which he argues is considerably extra useful for Religare’s hundreds of minority shareholders than the present open provide value of ₹225 per share from the Bajaj Group.
He believes SEBI ought to think about this into consideration earlier than making a remaining resolution on whether or not to permit a competing bid.
The controversy surrounding the Religare takeover intensified final week, with Gaekwad difficult the acquisition course of and urging regulatory intervention. His considerations primarily revolve round making certain that shareholders get the very best deal, and he has taken steps past SEBI to make his case.
In a big transfer, Gaekwad confirmed {that a} letter has additionally been despatched to Reserve Financial institution of India (RBI) Governor Sanjay Malhotra on the identical situation, in search of his intervention.
The Religare takeover saga has drawn appreciable consideration on account of its excessive stakes and the gamers concerned. Religare Enterprises, a diversified monetary providers group, has been on the centre of strategic curiosity, with a number of events now vying for management.
The corporate has seen main upheavals previously, together with governance and monetary challenges, making its acquisition a vital occasion within the monetary sector.
Gaekwad’s try to make a competing provide comes amid an open provide by Burman Group entities to amass further 26 per cent shares of the Religare Enterprises and cement their management. The Burmans have steadily elevated their stake within the firm and have already secured a majority place.
Nonetheless, Gaekwad’s transfer introduces contemporary uncertainty into the takeover course of, probably complicating the trail ahead. Gaekwad stated he’s prepared to supply ₹275 per share
Regulatory challenges
For SEBI, the scenario presents a regulatory problem in making certain a good and clear course of whereas adhering to market norms. The regulator might want to assess whether or not Gaekwad’s competing bid meets the mandatory situations and whether or not it may be entertained at this stage of the acquisition course of.
With Gaekwad decided to maneuver ahead, the approaching days may see additional developments, together with a proper response from SEBI or RBI, firm observers stated.
If regulatory authorities resolve to rethink Gaekwad’s proposal, it may reshape the dynamics of the Religare takeover. However, if his bid is finally not allowed, it may elevate questions concerning the openness of India’s company takeover framework, company observers stated.
For now, Gaekwad stays steadfast, signalling that he’s ready to take all obligatory steps to maintain his bid alive.
Moreover letters to the SEBI Chairperson, Gaekwad additionally wrote to the REL Board conveying his intent to amass a controlling curiosity in Religare Enterprises. Gaekwad’s letters sought SEBI permission to be exempted from varied statutory compliance-related timelines specified beneath the Takeover code.
