Sebi exempts family trusts linked to promoters of Somany Ceramics from open offer requirement
The directive comes after three trusts -- Sanrakshith Family Trust, Shakthi Family Trust and Srijan Family Trust -- sought exemption from applicability of Takeover Regulation following their proposed acquisitions of shares and voting rights in Somany Ceramics.
Shreekant Somany, one of the promoter of Somany Ceramics, has set up two family trusts -- Sanrakshith Family Trust and Shakthi Family Trust, while another promoter Anjana Somany has set up Srijan Family Trust.Under the proposed transaction, Shreekant Somany will transfer 10.24 per cent stake to Sanrakshith Family Trust.
Pursuant to this, these trusts will hold 44.26 per cent stake in Somany Ceramics.As per the regulatory norms, the proposed acquisition will attract the obligation to make open offer under the Takeover Regulations.
In an order, Sebi granted exemption to the family trusts from making open offer, saying that the proposed acquisitions are intended to streamline succession and promote welfare of the promoter family.Besides, the proposed acquisition will not affect the interest of public shareholders and there will be no change in control of the companies pursuant to the proposed acquisitions, Sebi noted. "The pre-acquisition and post-acquisition shareholding of the promoters in the target company will remain the same," the Securities and Exchange Board of India (Sebi) noted.
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