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    Sebi exempts family trust linked to Vascon Engineers' promoters from open offer obligation

    Synopsis

    Efficient succession planning for the next generation is being facilitated through the acquirer trust, the regulator said in its order on Thursday.

    Sebi 1
    The trust is a family trust, whose beneficiaries are the immediate relatives of the promoter of Vascon Engineers and part of promoter group.
    Markets regulator Sebi has exempted Vasudevan Family Trust from making an open offer following its proposed acquisition of shares in Vascon Engineers.

    Sebi noted that objective of the proposed acquisition is to achieve efficient succession planning as well as for holding the controlling interest in Vascon Engineers in one entity rather than spreading the holding amongst different individuals which may not be in the best interests of the company.

    Efficient succession planning for the next generation is being facilitated through the acquirer trust, the regulator said in its order on Thursday.

    The order came after Sebi received an application from the trustee of Vasudevan Family Trust seeking an exemption from the applicability of SAST (Substantial Acquisition of Shares and Takeovers) Regulations in the matter of proposed acquisition of shares in Vascon Engineers.

    The trust is a family trust, whose beneficiaries are the immediate relatives of the promoter of Vascon Engineers and part of promoter group.

    Under the proposed acquisition, Vasudevan Family Trust proposes to acquire 28.83 per cent stake of Vascon Engineers from Ramamoorthy Vasudevan (23.82 per cent) and Lalitha Vasudevan (5.01 per cent).

    Ramamoorthy Vasudevan is the promoter of the company. Vasudevan along with the promoter group collectively holds 36.19 per cent shareholding in the company.

    The proposed transaction will attract the obligation to make an open offer under the takeover regulations and accordingly exemption was sought from the regulator.

    In its order, Sebi said there will be no change in control of the firm pursuant to the proposed acquisition.

    The pre-acquisition and post-acquisition shareholding of the promoters and promoter group in the company will remain the same. Besides, there will also be no change in the public shareholding of the company.

    Accordingly, the regulator has granted "exemption to the Proposed Acquirer, viz. Vasudevan Family Trust from complying with the requirements of ...the Takeover Regulations 2011 with respect to the proposed direct acquisitions in the target company, viz. Vascon Engineers Limited, by way of proposed transactions."

    The exemption is subject to certain conditions, including compliance with the provisions of the Companies Act 2013 and other norms.

    It, further, said the exemption granted is limited to the requirements of making an open offer under the takeover regulations and will not be construed as an exemption from the disclosure requirements under compliance with the PIT (Prohibition of Insider Trading) norms and LODR (Listing Obligations and Disclosure Requirements) Regulations.



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    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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