 "Rashmi Saluja, chairperson, Religare")
Rashmi Saluja, chairperson, Religare
The shareholders of Care Health Insurance, an unlisted subsidiary of Religare Enterprises, today approved the reappointment of Rashmi Saluja as a director of the company with a comfortable majority.
In a statement, Care Health Insurance said its directors had reviewed the communication dated September 27 received from the proposed acquirers of Religare Enterprises demanding the removal of Saluja from the board of directors of Care.
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“In light of a legal opinion received by Care, the directors agreed that there exists no cause for the removal of Saluja, and a suitable response is being sent to the proposed acquirers accordingly,” the company said in a statement.
However, a source said Kedaara Capital, a minority shareholder holding a 16 per cent stake in Care Health Insurance, voted against the resolution. Religare Enterprises, which holds a 64 per cent stake in Care Health Insurance, voted for the resolution, thus securing a comfortable majority for Saluja’s reappointment. The rest of the stake is held by employees and Union Bank of India.
The Burmans, shareholders of Religare Enterprises, are currently in conflict with Religare’s board over control of Religare Enterprises.
The Burman family owns a 25.18 per cent stake in Religare Enterprises and has made an open offer to acquire an additional 26 per cent stake in the company. The open offer has been termed hostile by Religare Enterprises’ board. The Burman family had earlier written to the shareholders of Care Health Insurance urging them to remove Saluja.
Kedaara Capital and the Burmans did not comment.
The Religare board, led by Saluja, had previously classified the Burman family’s open offer for Religare Enterprises as a hostile acquisition, following their open offer made last year.
On Monday, shares of Religare Enterprises closed 5.87 per cent higher at Rs 291 each.
Saluja, who chairs Religare Enterprises, has successfully turned the company around over the past six years after it defaulted on loans under the previous management led by the Singh brothers. In a recent interview, Saluja said the Burmans’ open offer should have enhanced the company’s valuation by attracting new capital and innovative ideas while strengthening its leadership. “An open offer should not undervalue the company. Initially, the Burmans praised and supported our management, collaborating with the board over the past six years. Now, they assert their interest in the company due to its potential, yet simultaneously disregard the very people who contributed to that progress,” she had said.
First Published: Sep 30 2024 | 8:38 PM IST
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