Reliance in talks to buy Justdial for $800-900 million.

           

Reliance in talks to buy Justdial for $800-900 million.

Justdial Managing Director VSS Mani and family control 35.5 per cent stake in the company, which is currently valued at Rs 2,387.9 crore.

Mukesh Ambani-led Reliance Industries is in advanced talks with its founding promoters to buy Justdial for $800-900 million. Once completed, the deal will allow Reliance access to the 25-year-old listing company's merchant database.

A formal announcement is expected on July 16. The listing company has called a board meeting on that day, according to a report in The Economic Times.

Justdial is the market leader in the local search engine segment with 150 million average unique visitors per quarter. The company operates on platforms such as mobile, app, website and a telephone hotline with the number 8888888888.

Justdial's Managing Director VSS Mani and Family Control owns 35.5 per cent of the company, which is currently valued at Rs 2,387.9 crore.

Reliance aims to partially buy from Mani and make an open offer for an additional 26 per cent equity of the company. This could result in a payout of Rs 4,102 crore at current share prices. According to the daily, if the open offer is fully subscribed, Reliance will hold over 60 per cent stake and Mani will act as a junior partner.

Reliance is also expected to infuse capital into the listing company. The two sides have been in talks since April. Shardul Amarchand Mangaldas & Co, Cyril Amarchand Mangaldas and Goldman Sachs are advisors to the deal.

Source by internet.

Created by MOHAMMAD SHOAIB.