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The $2.5 billion Dubai-based Varkey group will further acquire 20 per cent in Everonn Education Ltd for a total consideration of Rs 237 crore.
On Tuesday, the group through its education arm Gems Education acquired 12 per cent (26.18 lakh equity shares) in the Chennai-based education company through a preferential allotment for a consideration of Rs 138 crore.
On Friday, the group issued an open offer to acquire nearly 44.83 lakh equity shares from Everonn's shareholders at a face value of Rs 10 at a price of Rs 528 a share. This aggregates to Rs 236.73 crore. The group's intention is to acquire 30-35 per cent of Everonn.
Reason
Post the acquisition of shares, the group will become Everonn's largest shareholder with 32 per cent stake in the company.
The offer will open on November 16 and will close on December 5. On reasons for the acquisition, the Varkey group in the open offer document said, Everonn was one of the leaders in preparation of content and distance education.
It is a well established company providing services in the sector through its information, communication and technology and Virtual and Technology Enabled Learning Solutions.
The combination of Varkey's market leading position in bricks and mortar education globally together with Everonn will provide considerable scope for synergy.
Varkey group does not plan to make any major change to the existing line of Everonn's business or its subsidiaries or to dispose off or otherwise encumber any assets of the company in the next 24 months.
Varkey Group, the manger to the offer — ICICI Securities, and ICICI Bank have entered into an Escrow agreement for the purpose of the offer. Accordingly the group deposited Rs 40 crore in the Escrow account.
The Varkey group is in the education business with nearly 10,000 faculties, and present in nearly 140 countries.
On the BSE, Everonn's share price closed at Rs 400.10, down by Rs 3.60 or 0.89 per cent over the previous day's closing price.
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