Need more time to examine deal: Thyagarajan
Shriram Group Chairman R Thyagarajan indicated that both Shriram Group and IDFC Bank did not want to constrain themselves into any time frame to agree on the merger of both the entities.
“Actually, we decided not to have a time limit to discuss the merger,” he told BusinessLine.
But he admitted that there were some big issues on which no agreement was reached upon between the two groups.
“We will need more time to examine. There is no guarantee that there could be an agreement at a later date. Also, there is no jurisdiction to abandon it totally. At the same time, it is not working out to set a time limit and come into an agreement within that period,” he stated.
Thyagarajan had earlier indicated that the merger of IDFC and Shriram Group involved a lot of complexities, and hence, it would take more time to evaluate the pros and cons of the merger in greater detail. A few shareholders, with whom BusinessLine spoke, said that it was expected that the deal would not be finalised in the 90-day period.
They pointed out that getting regulatory approvals, among others, will be a major task in the merger process.
“The merger is 60 per cent favourable for retail shareholders,” said a shareholder, who has shares in all the listed companies of both the groups.
In the latest annual general meeting of IDFC, several shareholders raised concerns over cultural fit and other challenges in the merger process. R Thyagarajan, Chairman, Shriram Group