The country’s largest retail player, Reliance Retail, is moving to strengthen its online presence by acquiring a controlling stake in local business search company Just Dial. Reliance Retail will initially acquire 25.33 per cent stake through preferential shares.
It will buy another 15.62 per cent from Just Dial founder VSS Mani. This will give the Mukesh Ambani company 40.95 per cent stake for ₹3,497 crore. Reliance Retail will then make an open offer to Just Dial’s public shareholders to acquire up to 2.17 crore equity shares representing 26 per cent, in accordance with SEBI Takeover Regulations. While the preferential allotment of 2.12 crore equity shares will be at ₹1,022.25 apiece, the 1.31 crore equity share buy from Mani will be at ₹1,020. Just Dial’s shares closed at ₹1,073 on Friday on the Bombay Stock Exchange.
Reliance Retail will leverage Just Dial’s database of 30.4 million listings and its consumer traffic of 129.1 million quarterly unique users, said a press statement. Isha Ambani, Director, Reliance Retail Ventures Ltd, said: “The investment underlines our commitment to new commerce by further boosting the digital ecosystem for millions of our partner merchants, micro, small and medium enterprises.”
News Source : Live Mint
