Religare chair Saluja opposing Burmans' open offer fearing loss of control, says Mohit Burman
Religare Enterprises is “fair” even as they wait for regulatory approvals on their proposal.
In an interview to ET, he said he hopes that shareholders will tender their shares in the open offer as the price presented is higher than Religare’s current market rate. Once the open offer is concluded, the Burman family, currently the largest shareholder of Religare, will nominate their directors to the board of the financial services company.
Burman said he is surprised by the behaviour of the Religare board, which had backed the open offer but is now against it.
The open offer price was determined according to Sebi rules, which, as per calculation, comes to around Rs 221 a share, said Burman.
“Our price is at a premium to that (Sebi formula) price, which is at Rs 235,” he told ET. “Even the prevailing market price as on date is less than the open offer price.
I think that it is a fair price. However, I leave it to the wisdom of all the other shareholders to decide whether they want to tender their shares in the open offer or stay invested in the company.”
On Wednesday, shares of Religare Enterprises closed 4.02% down at Rs 212.40 on the BSE.
Burman contended that the only person opposing the open offer is Religare chairperson Rashmi Saluja, as she doesn’t “want to let go of control” of the company.
He said that when the family made the open offer in September, the Religare board had supported them. The board had even sent a letter to the stock exchanges “welcoming” them and that “it will work with the family for a smooth transition”.
Burman argued that the family had also voted in favour of Saluja’s reappointment as chairperson two days after the open offer announcement.
