Singapore-based British Gas had acquired 60.1 per cent of the share capital of Gujarat Gas pursuant to an open offer made last year, with an option to the Mafatlal Group to sell to the former at a later date 6,41,250 shares that were retained by it.

The takeover panel recommended that as the acquirer was already holding 60.1 per cent shares and having controlling interest in the target company, the acquisition of the retained shares by British Gas was not going to affect this position and proposed the acquisition was in the interest of the shareholder. It was further observed that on the strength of the agreement with the Mafatlal Group, British Gas could exercise voting rights in respect of 6,41,250 shares retained by Arvind Mafatlal Group of Companies.

Therefore, the acquirer would continue toexercise the voting rights even after the retained shares of the Mafatlal Group was acquired by British Gas, SEBI said.