Dubai-based Varkey Group says it would acquire a further 20 per cent stake in India's Everonn Education through an open offer.
The company says it would buy about 44.8 million additional shares at Rs528 per share, or Rs237 crore, the company said in a public announcement today.
The group, on Tuesday, acquired 12 per cent (26.18 lakh) equity shares through its education arm Gems Education in the Chennai-based education company, through a preferential allotment, for Rs138 crore.
Yesterday, it issued an open offer for acquisition of 44.83 lakh equity shares from Everonn's shareholders of face value of Rs10 at a price of Rs528 a share, aggregating to Rs236.73 crore. The group intends to acquire a 30-35 per cent stake in Everonn.
The acquisition of shares would make it Everonn's largest shareholder with a 32-per cent stake in the company. The offer which it to open 16 November would close on 5 December .
The Varkey group said Everonn was one of the leaders in preparation of content and distance education as reasons for the acquisition in the offer document.
Everonn, a well-established company provides services in the education sector through its information, communication and technology and Virtual and Technology Enabled Learning Solutions.
Varkey's market leading position in conventional education coupled with Everonn's presence in technology enabled learning held considerable potential for synergy according to analysts.
Varkey group has no plans for making any changes to the existing line of Everonn's business or its subsidiaries or to dispose encumber any assets of the company in any way over the next 24 months.
Varkey Group, ICICI Securities, manager to the offer and ICICI Bank have entered into an escrow agreement for the purpose of the offer with the group depositing Rs40 crore in the escrow account.
Source: Domain B