CCI approves the proposed merger of Embassy group firms NAM Estates and Embassy One Commercial Property Developments with Indiabulls Real Estate
NEW DELHI :
Realty firm Embassy Group on Thursday said it expects to complete the process of merger of its certain housing and commercial projects with the Indiabulls Real Estate by the end of this year.
The Competition Commission of India (CCI) on Wednesday approved the proposed merger of Embassy group firms NAM Estates Pvt Ltd and Embassy One Commercial Property Developments Pvt Ltd with Indiabulls Real Estate Ltd (IBREL).
In August, Embassy Group entered into a definitive agreement to merge its certain residential and commercial projects with IBREL through a cash-less scheme of amalgamation. Embassy Group will become the promoters of the merged entity.
"With the scheme has received necessary approvals from CCI, SEBI & the stock exchanges and definitive agreements entered with BREP (Blackstone entities) and other institutional investors, the merger is now fully on track to fruition.
"We hope to complete the process by the third quarter of FY22," Embassy Group founder and Chairman Jitendra Virwani said in a statement.
Embassy Group has around 14% stake in IBREL and the same will increase to 45% after the merger of assets of these two companies.
Post-merger, the combined entity will have 80.8 million square feet of launched and planned development potential. The merged entity will have about 30 projects.
Under the terms of the agreement, the IBREL's shares are being valued at ₹92.5 per share.
Embassy Group is a major player in Indian commercial real estate. The group, along with Blackstone, launched India's first Real Estate Investment Trust (REIT) in 2019 to raise ₹4,750 crore through public issue. It also owns WeWork India.
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