On February 24, 2021 The Competition Commission of India(CCI) has approved the following merger and acquisition:
NAM Estates and EOCPDPL Merge into Indiabulls Real Estate Ltd
CCI gave approval for the proposed merger of NAM Estates Private Limited and Embassy One Commercial Property Developments Private Limited (EOCPDPL) into Indiabulls Real Estate Limited (IBREL).
Note:
This merger has received approval from the Securities and Exchange Board of India (SEBI) among others and is required to get approval from National Company Law Tribunal(NCLT)
Highlights
i.For this deal, IBREL and Embassy Group of companies arm NAM Estates and Embassy One Commercial Property Developments (NAM Opco) had entered into a definitive merger in August 2020 to amalgamate ongoing, completed and planned residential and commercial projects of these two subsidiaries.
ii.It is to be noted that after the transaction, the combined IBREL entity will become one of India’s leading real estate development platforms, with 80.8 million sq ft of development potential.
Steps of merger
Step 1– Certain identified assets, securities and / or investments of certain entities of the Embassy group will be transferred to Embassy Group entity(ies)
Step 2– Certain third party investors will swap their shareholding in the mentioned above assets for shareholding in NAM Estates and EOCPDPL
Step 3– After this, the restructured NAM Estates and EOCPDPL will merge into IBREL.
Consequent to this, IBREl will issue shares to the existing shareholders of NAM Estates and EOCPDPL.
Post Transaction
i.Already Embassy Group has about 14% stake in IBREL, post merger the stake will increase to 45% .
ii.The merger entity will have about 30 projects. The planned commercial projects in the combined entity will have a rent potential of Rs 4241 crores.
iii.The net surplus from residential launched and planned projects in combined entity is expected at Rs 18,592 crores.
iv.After the transaction, the merged entity will be owned as follows:
44.9%- Embassy Group
26.2%- existing public and institutional shareholders
9.8%- existing IBREL promoter group
19.1%- BREP and other Embassy institutional investors
About Embassy Group:
Headquarters– Bengaluru, Karnataka
Chairman and Managing Director– Jitu Virwani
About Indiabulls Real Estate Limited (IBREL):
Headquarters– Mumbai, Maharashtra
Founder & Chairman of Indiabulls group– Sameer Gehlaut
Bpifrance Participations S.A Acquires Technip Energies B.V.
CCI gave approval to the acquisition of Technip Energies B.V., belonging to TechnipFMC plc by Bpifrance Participations S.A.
Acquisition– As per the combination, Bpifrance Participations S.A. will acquire a minimum 11.82% and maximum 17.25% of outstanding shares of Technip Energies B.V.
Post transaction– After the transaction, the shareholding of Bpifrance Participations S.A.in Technip Energies B.V. will be increased to a stake of 14.07-20%.
Share purchase agreement– For this deal, a share purchase agreement between TechnipFMC plc and the Bpifrance Participations S.A. was signed in January 2021.
Note:
Acquirer– Bpifrance Participations S.A.
Target– Technip Energies B.V.
Seller– TechnipFMC plc
About Bpifrance Participations S.A.:
It is indirectly jointly owned by EPIC Bpifrance and the CDC group (through Bpifrance S.A.).
About TechnipFMC:
Chairman & CEO– Douglas J. Pferdehirt
Headquarters– London, United Kingdom
Recent Related News:
On December 30, 2020 The Competition Commission of India (CCI) approved the following acquisition under Section 31(1) of the Competition Act, 2002.
- TPG Growth V SF Markets Pte. Ltd. Acquires About 8% Stake in API Holdings Private Limited
- Jamnalal Sons Private Limited Acquires 51% equity share Capital of Mukand Sumi Special Steel Limited
About Competition Commission of India (CCI):
Established by– The Central Government with effect from 14th October 2003
Headquarters– New Delhi, India
Chairman– Ashok Kumar Gupta
