The Burmans of Dabur on Tuesday made an open offer to public shareholders of Eveready Industries India Ltd to acquire an additional 26% stake in the dry cell battery maker for Rs 604.75 crore after receiving the approval from market regulator, Securities and Exchange Board of India (SEBI).
The open offer will start on June 3 and will end on June 16. The offer price has been set at Rs 320 per equity share of Eveready Industries. The Burman Group has been purchasing Eveready shares from the open market as a personal investment since 2020 and currently holds 23.36%.
In a stock market filing on Tuesday, the open offer document filed by JM Financial said the acquisition of equity shares of Eveready by the Burman Group is to have a substantial holding of equity shares, voting rights, and control of the target company and become the promoter.
It also said at present there are no intentions by the Burman Group to dispose of or otherwise encumber any assets or investments of Eveready or any of its subsidiaries, through sale, lease, encumbrance, reconstruction, restructuring or other than in the ordinary course of business.
The filing also said the acquirers have not formulated any proposal as of now, which may have an adverse material impact on employees and location of a place of businesses of Eveready.
In February, the Burmans had given a mandate to JM Financial to buy an additional 5.26% stake in Eveready from the market when the family was holding 19.8% in the company. Accordingly, it currently holds 23.36% in Eveready. It had then also announced its intention for an open offer, but the approval from SEBI came recently delaying the process.
Source: Economic Times