Indiabulls Real Estate Ltd (IBREL) on Friday approved proposal of merger of certain ongoing, residential & commercial projects of Embassy Property Developments with itself.
The merged entity will be IBREL’s development arm for both commercial and residential assets.
Embassy Property Developments is in discussions with financial investors like Blackstone to raise upto $200 million before merger, said IBREL. Equity investment of $200 million will bring significant cash in merged IBREL for expanding its business operations, said the company.
IBREL board has constituted a reorganization committee to examine and evaluate options to implement merger proposal.
Under the proposed merger, certain projects of Embassy shall stand transferred to IBREL.
Bloomberg on Friday reported that IBREL is offering to buy back its cheapened bonds after an ongoing fraud probe and a prolonged credit squeeze helped push yields as high as 43% last year.
Indiabulls Housing Finance Ltd. will repurchase anything trading at a yield of more than 12% and has already spent ₹1,500 crore ($210 million) to buy its local debt in December, Chief Executive Officer Gagan Banga said in an interview at his Mumbai office. The lender has consistently denied allegations of wrongdoing and Banga said the deals aim to correct pricing in an opaque and shallow market.