The acquisition is certainly one of Reliance’s important M&As, dwarfing its buy of on-line pharma retailer Netmeds and British toy maker Hamleys for over Rs 620 crore every. Under the contours of the deal, Reliance is buying 40.95% in Just Dial by subscribing to preferential shares and shopping for shares from its principal promoter V S S Mani and his household for Rs 3,497 crore. Further, it should make an open supply to amass an extra 26% from Just Dial’s public shareholders entailing about Rs 2,222 crore. Reliance will make the open supply to Just Dial’s non-promoter shareholders at about Rs 1,022 apiece.
On Friday, the inventory closed at Rs 1,070 on the BSE, down 3%. If Reliance will get the whole 26% by means of the open supply, its stake in Just Dial will go as much as 66.95%. The transaction will see the native search engine maintained as a separate entity, with founder Mani persevering with as its CEO to “lead Just Dial through the next phase of growth”. The Just Dial board, which met on Friday, authorised Mani’s reappointment as CEO for one other 5 years.
In its regulatory submitting, Just Dial stated whereas the corporate will likely be beneath the only management of Reliance, Mani, who’s at present a promoter, will train his voting rights beneath the directions of the retailer. Mani’s brother V Krishnan, nonetheless, will step down from his function as a director of the corporate on expiration of his time period on July 31, Just Dial stated.
The deal will assist Reliance get entry to Just Dial’s huge database,“further boosting the digital ecosystem for millions of our partner merchants, micro, small and medium enterprises”, in keeping with Reliance Retail director Isha Ambani. The capital infused through preferential shares will assist the enlargement of Just Dial right into a complete native itemizing and commerce platform, the Reliance assertion stated. Besides Netmeds and Hamleys, Reliance has purchased on-line furnishings vendor Urban Ladder and lingerie retailer Zivame within the final two years.