US investor Digvijay “Danny” Gaekwad wants to meet Indian Prime Minister Narendra Modi during Modi’s visit to the US on February 12 and 13. Gaekwad hopes to talk about having a fair chance to buy Religare Enterprises, a financial services company.
Gaekwad, who is a Republican, is also seeking support from the US government to help with the purchase. He feels that he hasn’t been treated fairly by Indian authorities. “I must explain my situation to American lawmakers because US investors deserve better. I will also discuss these issues with Prime Minister Modi while he is in the US,” Gaekwad said in an interview.
Gaekwad plans to deposit Rs 600 crore (about $80 million) to acquire Religare and thanks the Supreme Court of India for giving him a chance. He is offering Rs 275 per share, while another bidder, the Burman family, has offered Rs 235 per share. Gaekwad believes that he should have had a fair chance without having to go to court.
The Burman family has also made an open offer to buy a 26% stake in Religare after taking a 25% stake earlier. The current management, led by Rashmi Saluja, disagrees with the Burman family’s offers, claiming it undervalues the company.
On February 7, the Supreme Court decided to extend the deadline for the Burman family’s open offer until February 12 and instructed Gaekwad to put down Rs 600 crore in cash or as a bank guarantee before that date.
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