Reliance Retail Ventures Limited (RRVL), the retail arm of Reliance Industries Limited (RIL), will acquire a majority stake of 66.95 percent in B2B search engine Just Dial in a cash deal worth Rs 5,710 crore.
The company is acquiring the local search engine, which boasts more than 30 million listings of enterprises across web, app and voice platforms.
Management Control
As per the agreement finalised, Just Dial Founder VSS Mani would continue to lead the company as its managing director and chief executive officer.
RRVL would hold 40.95 percent stakes in the company, as per the definite agreements executed on July 16, and would make an open offer to acquire upto 26% in accordance with takeover regulations set by market regulator SEBI.
Acquisition details
Reliance is acquiring 40.95% in Just Dial by subscribing to preferential shares and buying shares from its main promoter V S S Mani and his family for Rs 3,497 crore.
Further, it will make an open offer to acquire an additional 26% from Just Dial’s public shareholders entailing about Rs 2,222 crore.
Reliance will make the open offer to Just Dial’s non-promoter shareholders at about Rs 1,022 apiece.
If Reliance gets the entire 26% through the open offer, its stake in Just Dial will go up to 66.95%.
Benefit to Reliance
The deal will help Reliance get access to Just Dial’s massive database, further boosting the digital ecosystem for millions of our partner merchants, micro, small and medium enterprises.
The capital infused via preferential shares will help the expansion of Just Dial into a comprehensive local listing and commerce platform.
Comment from RRVL
Isha Ambani, “Reliance is excited to partner with Justdial and VSS Mani, a first-generation entrepreneur, who has created a strong business through his business acumen and perseverance.
The investment in Just Dial underlines our commitment to New Commerce by further boosting the digital ecosystem for millions of our partner merchants, micro, small and medium enterprises.
We look forward to working with the highly experienced management team of Just Dial as we further expand the business going forward.”
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