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Everonn shareholder’s approve Varkey’s entry

Everonn shareholder’s approve Varkey’s entry
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First Published: Thu, Oct 20 2011. 12 00 AM IST

File photo of P. Kishore, co-founder, Everonn Education Ltd.
File photo of P. Kishore, co-founder, Everonn Education Ltd.
Updated: Thu, Oct 20 2011. 12 00 AM IST
Chennai: Troubled education firm Everonn Education Ltd, whose co-founder P. Kishore has been accused of bribery and tax evasion, received shareholder approval at an extraordinary general meeting on Wednesday to raise additional funds by selling preferential shares to Dubai-based Varkey group.
Less than 50 shareholders present also approved raising the limit for total non-resident Indian investment in the company to 24% from 10%, which will help the Dubai-based company raise its stake.
File photo of P. Kishore, co-founder, Everonn Education Ltd.
Everonn will issue about 2.6 million preferential shares at Rs 528 each to the Varkey group, which had bought a 12 % stake for Rs 138 crore on 19 September. The group already held a 4.19% stake in the Chennai-based education company which it bought from the open market.
Susha John, chief executive officer and whole-time director of Everonn Education, did not take any questions from reporters after the shareholders’ meeting.
The Central Bureau of Investigation (CBI) arrested Everonn’s co-founder and managing director Kishore in August for allegedly bribing a tax officer to suppress Rs. 60 crore of tax payable by Everonn. A few days later, Jamshed J. Irani quit as chairman. The board then appointed John as Everonn’s chief executive to exercise powers delegated to the managing director.
Varkey group, which runs private schools in West Asia and other parts of the world, has announced an open offer to buy 20% more of Everonn for a total consideration of Rs 237 crore, at Rs 528 per share. According to Securities and Exchange Board of India regulations, when a company acquires 15% or more of another entity, it needs to make an open offer to buy additional shares.
The open offer will begin on 16 November and closes on 5 December.
Everonn shares gained 0.75% to Rs 375.60 on a day the Bombay Stock Exchange’s benchmark Sensex rose 2.01% to 17,085.34.
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First Published: Thu, Oct 20 2011. 12 00 AM IST