Just Dial Ltd shareholders approved proposals to offer shares worth Rs 2,165 crore to Reliance Retail Ventures Ltd (RRVL) through a preferential allotment. At the company’s extraordinary general meeting (EGM) on Friday, 97.49% of shareholders voted in favour of the motion.
For around Rs 3,497 crore, the company would buy a 66.95% share in Just Dial Ltd. A database of millions of merchants and other users will be available to the retail arm of India’s most valuable firm. Just Dial will issue 21.2 million preferential shares (equal to 25.33% post preferential share capital) to RRVL for $1,022.25 per share, according to the agreement.
At $1,020 per share, the RIL subsidiary will also buy 13.1 million equity shares from Just Dial’s founder Mani (equal to 15.62% post preferential share capital). This would give RRVL a controlling share in Just Dial of 40.95%
By takeover requirements, Reliance Retail Ltd (RRVL) has made a notification to the public shareholders of Just Dial that it will buy up to 21.7 million shares, representing a 26% stake. RRVL’s shareholding will increase to 66.95% if it purchases the entire 26% interest through the open offer. As managing director and chief executive officer, the company’s founder V.S. Mani will continue to run the Business-to-Business (B2B) search engine.