Eveready Industries Chairman and Managing Director, Aditya Khaitan and Amritanshu Khaitan, announced their resignation after Burman Group takeover the bid.
The resignation of the Khaitans came two days after the Burman’s, founder of Dabur, a food company, made an open offer for a Kolkata-based dry cell company.
After their resignation, Suvamoy Saha is assumed to take charge of Managing Director, according to the reports.
Burmans were already the largest shareholder of the company with 19.85% stakes. They acquire an additional 5.26% Eveready stake from the open market, which put total shareholding at 25.11%.
After acquiring the shares, Mohit Burman of Dabur group said- “Eveready has great potential and only needs directions”. This is the appropriate time for the Burmans to step in. We had been monitoring the company’s situation for a long time, he added.
“We feel we will be able to add value to the company and take the business to the next level,” said the director of Dabur. However, Dabur is not directly involved in the acquisition process.
Khaitan’s belonged to Eveready for two decades. They had come under the group in 1993 when it acquired Union Carbide India, and later it was renamed ‘Eveready Industries India’.
The promoter’s shareholding in Eveready fell to 4.8%, a huge fall from 44.1% over the past two years, following defaults on repayments, promoting lenders to offload their pledged shares.
The Khaitan had pledged their shareholding in Eveready and McLeod Russel, a tea producer, for loans to repay McNally Bharat Engineering’s debts.