In a crucial development in the battle for control over Religare Enterprises Limited (REL), the Supreme Court has directed the extension of the Burman family’s open offer until February 12, 2025. The Court intervened to prevent the scheduled closure of the offer today, ensuring it remains open until Florida-based businessman Digvijay Gaekwad deposits Rs 600 crore as earnest money by February 12.
Key Supreme Court directives:
- The Burman family’s open offer at Rs 235 per share will remain open until February 12.
- Gaekwad has been directed to deposit Rs 600 crore as earnest money by the same date.
- If Gaekwad meets the deposit deadline, the open offer will remain active until SEBI decides on his application for a counter offer.
Background:
The takeover battle for Religare intensified after the Burman family announced their open offer on October 4, 2023. Gaekwad later proposed a competing offer at Rs 275 per share, a 17% premium over the Burman family’s offer of Rs 235 per share. However, the Burmans contested the validity of Gaekwad’s bid, citing SEBI’s 15-day window rule for competing offers.
The outcome of the SEBI decision and Gaekwad’s ability to meet the Rs 600 crore earnest money requirement will play a crucial role in the acquisition battle ahead.