1 min read.Updated: 15 Aug 2021, 05:59 AM ISTLivemint
Shareholders of Just Dial Ltd on Friday approved plans to issue shares worth ₹2,165 crore through a preferential allotment to Reliance Retail Ventures Ltd (RRVL), according to a stock exchange filing on Saturday.
MUMBAI: Shareholders of Just Dial Ltd on Friday approved plans to issue shares worth ₹2,165 crore through a preferential allotment to Reliance Retail Ventures Ltd (RRVL), according to a stock exchange filing on Saturday.
The resolution was passed with 97.49% voted in favour of the resolution at the company’s extraordinary general meeting (EGM) on Friday.
The deal, announced last month, will see RRVL acquire a 66.95% stake in Just Dial Ltd for ₹3,497 crore, giving the retail arm of India’s most valuable company access to a database of millions of merchants and other users.
According to the agreement, Just Dial will allot 21.2 million preferential shares (equivalent to 25.33% post preferential share capital) at ₹1,022.25 per share to RRVL.
The RIL subsidiary will also acquire 13.1 million equity shares from Just Dial’s founder Mani (equivalent to 15.62% post preferential share capital) at a price per share of ₹1,020. This would give a controlling stake of 40.95% to RRVL in Just Dial.
RRVL has also made an announcement to the public shareholders of Just Dial to acquire up to 21.7 million shares of Just Dial, representing 26% in accordance with takeover regulations, taking the total shareholding to 66.95%, if RRVL acquires the entire 26% stake through the open offer.
Reliance Retail will be classified as a promoter of Just Dial post this deal, it said on Friday.
Just Dial founder V.S.S. Mani will continue to lead the business-to-business (B2B) search engine as its managing director and chief executive officer.