Four entities of the Burman family that owns Dabur have made an open offer to acquire up to 26 per cent in Religare Enterprises Limited (REL) for an amount of Rs 2,116 crore. The offer price of Rs 235 per share represents a premium of 21.91 per cent over Religare's stock's closing price on September 23. Religare's shares are down to Rs 253.10 a piece at the time of filing.
The entities include the firms MB Finmart Pvt Ltd, Puran Associates Pvt Ltd, VIC Enterprises Pvt Ltd, and Milky Investment & Trading Company. The Burman family is currently the single largest shareholder in REL as it holds a 21% stake through them, according to Mint.
SEBI's rules require an acquirer to make a public offer to acquire all of the remaining shares in a firm if the acquirer takes possession of 25% or more of the voting rights.
A statement issued by the family has said that the open offer has been made to increase the family’s stake and to take control of Religare. The offer will be conducted in accordance with SEBI's (SAST) Regulations.
Anand C. Burman, Chairman Emeritus, Dabur India Ltd in a statement said, "The proposed transaction is in line with our vision to create a leading financial services platform that encompasses lending, broking and health insurance services. We are convinced that REL is the right platform and positioned for sustained success. With our guidance, REL will continue its journey to being one of India’s distinguished financial services platforms."
JM Financial Limited served as the exclusive financial advisor to the Burmans. The firm will also oversee the management of the open offer. TT&A and Anagram Partners provided legal counsel in this matter.