GIC affiliate Reco Berry has confirmed a deal to acquire a stake of up to about 39.2 per cent (about 30.8 million shares) in Nirlon Ltd.
In addition, it will make a cash offer of 222 rupees (S$4.63) per share to Nirlon's public shareholders for up to an additional 28.4 per cent of Nirlon. Assuming a full take-up of the open offer, Reco Berry will hold 62.6 per cent of Nirlon.
Separately, Reco Berry has also entered shareholder agreements to purchase up to 4.5 million shares from Alfano Pte Ltd, Deltron Pte Ltd, Kunal V Sagar and Rahul V Sagar, the existing promoters of Nirlon, for a price of 222 rupees per share, in aggregate representing 5.0 per cent shareholding in Nirlon.
It is also in talks with certain other shareholders to acquire up to 1.8 million equity shares constituting about 2.0 per cent shareholding in Nirlon.
The acquisition is subject to regulatory approvals and other conditions (including completion of the open offer) being fulfilled and will result in Reco Berry acquiring control in Nirlon.
Nirlon, which is listed on the Bombay Stock Exchange, owns Nirlon Knowledge Park (NKP). NKP is a large-scale, high quality, information technology office park located in Mumbai. NKP comprises seven blocks and is spread across a total construction area of 3.3 million sq ft.
Loh Wai Keong, managing director & co-head Asia, GIC Real Estate Pte Ltd said: "Nirlon has created a high- quality asset and we are excited about supporting the next phase of growth and asset enhancement to build sustainable value for this development. We look forward to working closely with the Sagars and their management team. This acquisition is consistent with our strategy in India to invest in assets that generate stable income streams over the long term."
The promoters, Kunal Sagar and Rahul Sagar, were instrumental in NKP's conceptualisation and development. Mr Kunal Sagar will continue as the executive vice-chairman and Mr Rahul Sagar will continue as the executive director of Nirlon Ltd.