Embassy, Indiabulls Real Estate amalgamation gets key approvals

Our Bureau Bengaluru | Updated on February 25, 2021

Merger process progressing to completion in a timely manner, say companies

The Proposed Scheme of Amalgamation between Indiabulls Real Estate Ltd (IBREL), NAM Estates Pvt Ltd (NAM) and Embassy One Commercial Property Developments Private Limited (EOCPDPL) filed with CCI, BSE, NSE and the Securities Exchange Board of India (SEBI) has received all relevant regulatory approvals.

IBREL, NAM and EOCPDPL, in a joint release said: “Now with all necessary corporate approvals on track, the merger process is progressing to completion in a timely manner.”

NAM and EOCPDPL are subsidiaries of the Embassy Group, Embassy Group is one of the largest developers in Bengaluru and holds 14 per cent of IBREL.

The Embassy Group entered into a definitive agreement with IBREL to merge its certain residential and commercial projects with IBREL through a cash-less scheme of amalgamation whereby Embassy Group became the promoter of the merged entity upon merger.

Further, certain entities controlled by the Blackstone Group Inc (BREP) would also contribute certain identified residential projects to the merger through a share swap arrangement with Embassy Group entities, subject to the satisfaction of certain conditions.

The resulting combined entity, Embassy Developments Limited, will hold both Embassy Group’s and IBREL’s ongoing, completed but unsold and planned projects with 80.8 million square feet of development potential, thus becoming one of the largest property development platforms in the country. The merger also provides diversification to IBREL shareholders through a balanced mix of residential and commercial development with visibility on near term liquidity through sold receivables in excess of ₹4,220 crore for the combined entity.

Jitendra Virwani, Chairman & Founder of the Embassy Group, said, “With the scheme having received necessary approvals from CCI, SEBI and the stock exchanges and definitive agreements entered with BREP and other institutional investors, the merger is now fully on track to fruition. We hope to complete the process by the third quarter of FY22.”

Mehul Johnson, Joint Managing Director of IBREL said, “Embassy Group completing the execution of definitive agreements with institutional investors, including BREP, to participate in the merger and the scheme receiving required approvals from CCI, SEBI and the stock exchanges in a timely manner are significant achievements and a significant step closer to the completion of the merger. These institutional investors bring with them strong corporate governance standards and best practices and will only further enhance value for shareholders of the combined entity in the long term.”

Published on February 25, 2021

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