Reliance retail ventures limited has announced the acquisition of a controlling stake in Justdial limited for a total amount of Rs 3,497 crore. VSS Mani, however, will continue to lead Justdial Limited as managing director & Chief Executive Officer.
According to the executed definitive agreements worked out between Reliance Retail Ventures Limited (RRVL), Justdial Limited (Justdial) and VSS Mani & others, preferential allotment of 2.12 crore equity shares (equivalent to 25.33% post preferential share capital) was a price per share of Rs 1,022.25, acquisition of 1.31 crore equity shares by RRVL from VSS Mani (equivalent to 15.62% post preferential share capital) at a price per share of Rs 1,020.00, shareholders agreement governing certain inter se rights and obligations between the parties.
The RRVL would make a Public Announcement to the public shareholders of Justdial to acquire up to 2.17 crore equity shares of Justdial representing 26.00% in accordance with SEBI Takeover Regulations.
Speaking on this transaction, Isha Ambani, Director of RRVL, said, “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 Justdial 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 Justdial as we further expand the business going forward.”
VSS Mani, Founder and CEO at Justdial, said, “Nearly 25 years ago, we had the vision to build a connected single platform dedicated to providing fast, free, reliable, and comprehensive information to our users and connect buyers to sellers. Our vision has evolved to not only provide search and discovery but drive commerce across merchants through our B2B platform and enable the further consumer to merchant commerce given our platform engagement. Our strategic partnership with Reliance enables us to realize this vision and transform the business going forward.”
The transaction is subject to shareholder and other customary closing conditions and approvals.
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