The $2.5-billion Dubai-based Varkey group's Gems Education has acquired 12 per cent stake in Everonn Education for Rs 138.23 crore. Varkey will soon launch an open offer to Everron's shareholders and join the company as a co-promoter.
Everonn issued 26.18 lakh equity shares of Rs 10 each for cash at Rs 528 a share, including a huge premium of Rs 518 a share (as against today's closing price of Rs 367.15), to the Varkey group, claimed to be world's largest K-12 education service provider.
On the Bombay Stock Exchange, Everonn shares rose 4.99 per cent to hit the upper circuit at Rs 367.15.
The deal comes after the recent arrest of Everonn's former Managing Director, Mr P. Kishore, on allegations of trying to bribe an Income-Tax Department official.
Everonn's board also approved a tripartite memorandum of understanding between Varkey Group and SKIL Infrastructure Ltd (Confirming Party) to this effect. SKIL being a co-promoter of Everonn has become party to the MoU.
“It is a landmark deal for Everonn, which has been looking for such a relationship for a while,” said Mr Nikhil Gandhi, Group Chairman and Executive Chairman of SKIL Infrastructure. Gems Education will bring in global expertise and best practices to Everonn, he said. Everonn is said to be the largest VSAT Education Network in the world. The Varkey group will acquire another 22-23 per cent in Everonn, making it the company's largest shareholder, said Mr Gandhi.
Ms Susha John, CEO, Everonn, said, “We are thankful to SKIL for having supported the management throughout and identifying the Varkey Group as a strategic investor. I am sure that this will raise the operations of Everonn to greater levels.”
Headed by NRI entrepreneur Mr Sunny Varkey, the Gems Education operates over 100 international schools and in nearly 140 nations.
Meanwhile, the bail application of Mr Kishore was dismissed today by the Madras High Court. He will now appear before the special court of the Central Bureau of Investigation on September 27. According to the CBI, Mr Kishore conspired with the IT official to conceal taxable income of Rs 116 crore and had paid a bribe of Rs 50 lakh to suppress this income.