The Eveready Industries board on Tuesday appointed Suvamoy Saha as managing director of the battery maker for three years. The appointment is effective Tuesday, March 8, Eveready said in a stock exchange filing.
On March 3, the board had requested Saha, the joint managing director, to assume responsibility as managing director following the resignation of managing director Amritanshu Khaitan. Khaitan, along with non-executive chairman Aditya Khaitan, resigned following an open offer from the Burmans of Dabur.
In a letter to the board, Amritanshu Khaitan said as the Burman family, the largest shareholders of Eveready, had expressed interest to take management control and provide new leadership and direction to the company, it would be “appropriate” for him to step down from the board.
At the end of the third quarter of this fiscal, the Khaitans owned 4.84% stake in the Kolkata-based company, while the Burmans had 19.84%. After announcing the open offer, the Burman Group said given its significant shareholding in the battery maker and its intention to acquire control, it had already requested appropriate representation on the board through the appointment of three directors. Moreover, the Burman family would want to appoint a chairman after the open offer, as per Sebi guidelines.
The Burman Group made the open offer to acquire an additional 26% share of the Khaitans-promoted company for Rs 604.76 crore. The mandatory open offer under the takeover regulations was made as the Burmans proposed to purchase an additional 5.26% share of the battery maker for Rs 122.30 crore, taking their total shareholding to 25.11%.