Need more time to ex­am­ine deal: Thya­gara­jan

The Hindu Business Line - - NEWS - G BALACHANDAR

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

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