Indiabulls sells its 14% stake to Embassy.
By Abhay Harish Shah, Realty Quarter
Embassy real estate development acquired an approximately 14% stake in Indiabulls real estate on Friday from its promoter via a bulk stock deal.
The contract is composed of the three-phase transaction in which an alliance of Blackstone Group-Embassy will acquire the 39.5% shareholding of Rs.2,700 crore by Indiabulls Group chairman Sameer Gehlaut.
The terms and conditions state that Blackstone-Embassy is about to acquire the Gehlaut’s remaining 24% stake within 6-8 weeks, then offering the shareholders an open offer.
On Friday at the weighted average cost of Rs.150.45 each, Embassy took on nearly 6.31 crore Indiabulls Real Estate stocks. After a day’s high of Rs.151, the stock was closed 2.6% lower at Rs.128.20 in the Bombay Stock Exchange.
Indiabulls Real Estate has housing projects in building at 23.5 million sq.ft and commercial projects at 2.4 million sq ft. The agreement is worth almost Rs.7,000 crore for its company.
The Blackstone and Embassy plan to create it an alliance housing platform and maintain the real estate developer listed after the transaction are concluded. This is Blackstone’s first time in India to acquire a listed real estate business.