Shareholders of Just Dial Ltd on Friday approved plans to issue equity shares worth Rs 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 favor of the resolution at the company’s extraordinary general meeting (EGM).
The deal, announced last month, will see RRVL acquire a 66.95% stake in Just Dial Ltd for Rs 3,497 crore. According to the agreement, Just Dial will allot 21.2 million preferential shares (equivalent to 25.33% post preferential share capital) at Rs 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 Rs 1,020. This would give a controlling stake of 40.95% to RRVL in Just Dial.
Mukesh Ambani-led Reliance Industries Limited subsidiary 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 (MD) and chief executive officer (CEO).
The final resolution in the EGM related to the appointment of V. Krishnan, as a group president of the company, holding the office of profit, was approved with 75.16%. VSS Mani’s brother Krishnan was supposed to step down from his role of director of the company on July 31, 2021.
It is worth adding that Reliance Retail Ventures Ltd’s open offer for the shareholders of Just Dial to buy an additional 26 per cent stake in the company will commence on September 13 and close on September 24, according to a regulatory filing.
The tendering period is slated to commence from September 13 (offer opening date), and the date of closure of the tendering period has been fixed for September 24, as per the notice.
