US businessman Gaekwad takes on Burmans in Religare takeover battle

The counter offer of Rs 275 a share in cash was made late Friday evening, just two days before the open offer of Rs 235 a share made by the Burman family of the Dabur group opens on Monday

The Securities and Exchange Board of India (Sebi) will decide whether to allow Digvijay ‘Danny’ Gaekwad, a US-based entrepreneur, to make a counter offer for Religare Enterprises, a financial services firm.

 

The counter offer of Rs 275 a share in cash was made on Friday evening, just two days before the open offer of Rs 235 a share made by the Burman family of the Dabur group opens on Monday. But the offer will have to pass the Sebi test, say lawyers.

 

Gaekwad has not appointed a merchant banker yet for the offer, as per a letter addressed to the Sebi. On Sunday, Gaekwad clarified that his offer is to acquire 55 per cent stake in Religare Enterprises which would be higher than Burmans offer to take their stake to 54 per cent (including acceptance of the open offer).

 

Gaekwad, a Trump supporter, is the Founder-CEO of NDS USA, an information technology and cloud services company, and the founder of Danny G Management, which owns and operates various restaurants and hotels.

 

“The counter offer has set the stage for the shareholders to take a call whether to wait for Sebi ruling on the Gaekwad counter offer or tender shares in the Burmans open offer," said a Mumbai based lawyer. Gaekwad said the offer made by Burmans has undervalued Religare and hence the counter offer.

 

As per the University of Central Florida, where he is a trustee on the board, Gaekwad also owns DG Hospitality, a hotel and restaurant management consulting company, and Danny Gaekwad Development & Investments, which oversees his real estate investments.

 

Born in Vadodara, Gujarat, Gaekwad is son of a Judge and grandson of a Colonel in the Indian Army. After graduating in Political Science Maharaja Sayajirao University of Baroda, he went to the United States in 1987 and set up several small-and medium-sized companies in diverse areas that include convenience stores, real estate development, hospitality, and information technology.

 

Over the years, Gaekwad created thousands of jobs in Florida and other parts of the United States, contributing hundreds of millions of dollars to the economy, the website says.

 

In 2016, Danny was recognised by then Florida Governor Rick Scott with the “One Million Jobs” certificate of appreciation for his contribution “in helping Florida job creators add 1 million jobs between December 2010 and December 2015.”

 

Gaekwad also served in a variety of public, private and non profit leadership roles including including a Trustee of University of Central Florida Board of Trustees and executive Board Member, Enterprise Florida Board of Directors among others.