The acquisition is one of Reliance’s significant M&A purchases of online pharma retailer Netmeds and British toy maker Hamleys for over Rs 620 crore. Under the framework of the deal, believe Gaining 40.95% by subscribing to preference shares in Just Dial and buying shares from its main promoter VSS Mani and his family for Rs 3,497 crore. In addition, it will make an open offer to acquire an additional 26% from the public shareholders of Just Dial for about Rs 2,222 crore. Reliance will make an open offer of approximately Rs 1,022 to the non-promoter shareholders of Just Dial.
The stock had closed at Rs 1,070 on Friday BSE, down 3%. If Reliance gets the full 26 per cent through an open offer, its stake in Just Dial will increase to 66.95%. The transaction will keep the local search engine as a separate entity, with founder Mani continuing to “lead Just Dial through the next phase of growth” as its CEO. The Just Dial board meeting on Friday approved the reappointment of Mani as CEO for the next five years.
Just Dial in its regulatory filing said that while Reliance would have sole control of the company, Mani, who is currently a promoter, would exercise his voting rights under the directions of the retailer. Mani’s brother V KrishnaniHowever, he will step down from his role as a director of the company at the end of his term on July 31, Just Dial said.
The deal will help Reliance gain access to Just Dial’s vast database, “further boosting the digital ecosystem for our millions of partner merchants, micro, small and medium enterprises”, according to Reliance Retail Director Isha Ambani. The infusion of capital through preference shares will help Just Dial expand into a comprehensive local listing and commerce platform, Reliance said in a statement. Apart from Netmeds and Hamleys, Reliance has bought online furniture seller Urban Ladder and lingerie retailer they are common in the last two years.
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