Religare Enterprises Faces Rival Bid for 26% Stake Acquisition
In a dramatic turn of events, Religare Enterprises has received a proposal from U.S. businessman Digvijay "Danny" Gaekwad to acquire a 26% stake in the company. This development comes amidst an ongoing battle for control of the Indian financial services firm.
Previously, the wealthy Burman family, founders of Dabur India, had increased their stake in Religare to nearly 25%, triggering an open offer to purchase additional shares. However, Religare's independent directors deemed the offered price of 235 rupees per share inadequate.
Gaekwad's offer of 275 rupees per share represents a 17% premium over the current bid. It has reignited the contest for control of Religare, which boasts a market value of 81.83 billion rupees ($949.30 million).
The Burman family, if successful in acquiring control of Religare, will face competition from other Indian billionaire families in the financial services sector, such as Mukesh Ambani's Jio Financial Services and Bajaj Finance.
However, the Burmans' bid has encountered regulatory and legal hurdles. A minority shareholder has filed a petition with the Delhi High Court, seeking to halt the Burmans' open offer. The court has issued a notice to the Burmans and SEBI, stating that any further actions must abide by the lawsuit's outcome.
The ongoing battle for Religare Enterprises highlights the intense competition in India's rapidly growing financial services industry. The outcome of this contentious acquisition process remains uncertain, further fueling the drama surrounding the company's future.