New Delhi, Oct 29 (PTI) Markets regulator Sebi on Friday exempted Falcon Trust and Trinity Trust from making open offer following their proposed acquisition of shares in Supreme Holdings & Hospitality (India) Limited.

The order comes after Sebi received an application from Namita Jatia on behalf of the trusts seeking exemption from the applicability of SAST (Substantial Acquisition of Shares and Takeovers) norms in the matter of proposed acquisition of Supreme Holdings' shares.

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Namita Jatia and Vidip Jatia are part of the promoter group since 2016 and 1995, respectively. The proposed acquisition involves transfer of equity shares of Supreme Holdings (Target Company) from Namita Jatia to the Falcon Trust and Vidip Jatia to Trinity Trust.

Pursuant to the proposed acquisition, the acquirer trusts would hold 40.99 per cent equity shares in Supreme Holdings and along with promoters they would exercise control over 63.31 per cent of the company.

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The proposed transaction will attract the obligation to make open offers under the takeover regulations and accordingly exemption was sought from the regulator.

The exemption has been sought on the ground that the proposed acquisition is intended to streamline the Jatia Family's shareholding in Supreme Holdings with a view to consolidate control and achieve succession planning objectives.

In the order, Sebi said there will be no change in control of Supreme Holdings pursuant to the proposed acquisition.

The pre-acquisition and post-acquisition shareholding of the promoters and promoter group in the company will remain the same. Besides, there will also be no change in the public shareholding of the company.

Accordingly, the regulator has granted "exemption to the proposed acquirers, viz. Falcon Trust and Trinity Trust from complying with the requirements of... the Takeover Regulations, 2011 with respect to the proposed direct acquisitions in the Target Company viz. Supreme Holdings & Hospitality (India) Ltd by way of proposed transactions".

The exemption is subject to certain conditions, including compliance with the provisions of the Companies Act and other norms.

In a separate order, Sebi has granted exemption to certain entities from open offer requirements with respect to the proposed direct and indirect acquisition of shares in Genus Power Infrastructures Ltd and Genus Paper & Boards Ltd.

The entities that have been exempted are -- Shantishwaram NY Family Trust, Shantishwaram KA Family Trust and Shantishwaram RJ Family Trust.

The acquirer trusts do not hold any equity shares in two target companies -- Genus Power Infrastructures Ltd and Genus Paper & Boards -- prior to the proposed acquisition. Following the acquisition of shares by trusts, the trusts will directly and indirectly acquire control over the two companies.

Granting exemption, Sebi said that pursuant to the proposed acquisitions, there will be no change in the management control of the two companies. "The pre-acquisition and post-acquisition shareholding of the promoters and promoter group in the target companies will remain the same. There will also be no change in the public shareholding of the target companies," Sebi said in its order. The exemption was sought as the proposed acquisitions were only a private family arrangement and a non-commercial transaction for the smooth succession planning of the promoter's family and to streamline the promoter's family assets and businesses.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)