Eveready Industries: The chairman and managing director of Eveready Industries has resigned after the Burman family, the promoters of Dabur, submitted a bid for acquisition. This has come to the fore in a recent media report.
Aditya Khaitan and Amritanshu Khaitan have resigned two days after the Burman family brought an offer for a Kolkata-based dry cell battery company. According to a filing, Suvamoy Saha will take over as the new MD of the company.
Burman Group recently brought open offer
After buying an additional 5.26 per cent stake in Eveready from the open market, the Burman family has come up with an open offer mandated under the takeover rules of SEBI. By buying shares from the open market, Burman’s total stake in the company had increased to 25.11 per cent. Before the takeover bid, Burman was the largest shareholder in the company with 19.85 per cent stake.
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Will take business to new level: Burman
Mohit Burman of Dabur Group said that we have been a shareholder for more than two and a half years and he was monitoring the company situation for some time. He said, “We felt the company needed the right direction now. The good thing is that despite the group’s financial issues, it has a sound financial position. We see good future for the company. We think we will be able to add value to it and take this business to a whole new level.”
Dabur India is not directly involved in the process of acquiring Eveready, a statement said.
Eveready is a Khaitan Group company for two decades
Eveready belongs to the BM Khaitan group for over two decades. It joined the group in 1993, when it was bought from Union Carbide India and renamed as Eveready Industries India.
Promoters’ stake reduced from 44 per cent to 4.8 per cent
Promoters’ stake in Eveready has come down from 44.1 per cent to 4.8 per cent in the last two years. The main reason for this was loan default, due to which the lenders sold the pledged shares.
Khaitan had pledged his stake in Eveready and tea producer McLeod Russell to pay off the debt of McNally Bharat Engineering.
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