New Delhi, Sep 25 (IANS): Entities belonging to the Burman family on Monday announced an open offer to the public shareholders of Religare Enterprises Limited (REL) to acquire upto 26 per cent of the expanded voting share capital of REL.

The open offer is made with the intention to increase the family’s stake and take control of REL. It will be conducted in accordance with the SEBI (SAST) Regulations.

The Burman family, through its group entities, is currently the single largest shareholder in REL, and holds 21 per cent stake through M.B. Finmart Private Limited, Puran Associates Private Limited, VIC Enterprises Private Limited, and Milky Investment & Trading Company.

Speaking on the significance of this development,Dr. Anand C Burman, Chairman Emeritus, Dabur India Limited, 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.”

The open offer to the Public Shareholders would be at a price of Rs 235 per equity share aggregating to a total consideration of Rs 2,116 crore assuming full acceptance of the open offer, subject to the terms and conditions mentioned in the Public Announcement dated September 25 (“Public Announcement”), and to be set out in the detailed public statement and the letter of offer that are proposed to be issued in accordance with the SEBI (SAST) Regulations.

The Acquirers intend to take control of REL once the Open Offer is concluded in accordance with the provisions of the SEBI (SAST) Regulations.

The Acquirers reserve the right during the interim period, pending completion of the open offer, to appoint directors to the board of directors of REL and take all measures to assume control of REL, subject to complying with the provisions of the SEBI (SAST) Regulations.

Further, the Acquirers intend to review the management structure of REL and its subsidiaries, and subject to complying with the provisions of the SEBI (SAST) Regulations, reserve the right to require REL and its subsidiaries to implement such changes in the management structure as determined by the board of directors of REL.

The completion of the open offer is subject to receipt of statutory approvals required, to be set out in the detailed public statement and the letter of offer that are proposed to be issued in accordance with the SEBI (SAST) Regulations.

JM Financial Limited acted as the exclusive financial advisor to the Acquirers and shall act as the Manager to the open offer.

TT&A and Anagram Partners acted as legal advisors.