Religare asked to facilitate the Burman family’s acquisition attempt.
Markets regulator SEBI has directed Religare Enterprises Ltd (REL) to enable an open offer bid by the Burman family for acquiring additional shares in the firm.
In an interim order, SEBI noted the Burmans, who own a stake in Dabur, had announced an open offer to purchase REL shares nine months ago. However, REL management has been denying cooperation.
SEBI said REL must submit an undertaking to apply for regulatory approvals from RBI within a week, to facilitate the open offer process. The regulator also asked REL to set up an independent directors’ committee to oversee the matter.
Earlier, the Burmans could not seek RBI’s nod for change in REL control as rules allow only the target company to make such applications.
While the acquirers want to fulfill open offer obligations, REL has adopted a hostile stance to frustrate their efforts, SEBI noted.
Stating shareholders’ rights cannot be hindered, SEBI said existing management facing conflict of interest should not block control acquisition via open offer.
REL said SEBI directing it to apply for approvals amounted to overreach. However, as per the order, REL will now have to cooperate and seek regulators’ fitness for the Burmans to take over via the open bid.
