Indiabulls Real Estate & Embassy Group merger: Deal Fine Print

Описание: Assets of Embassy Group to merge into Indiabulls Real Estate (“IBREL”), to create one of India’s largest listed real estate companies. The merged entity will have a balanced mix of commercial and residential assets which should provide a natural hedge against cyclicality and shall benefit from the new promoter, Mr Jitendra Virwani, chairman of the Embassy Group.
Indiabulls Real Estate, Embassy Group finalize merger terms, share swap
To merge their residential and commercial projects across markets
Joint entity’s new promoter, Mr Jitendra Virwani, chairman of the Embassy Group
The joint entity to have 30 projects spread across major Tier I and a few Tier-II cities of India
The joint entity to be renamed as “Embassy Developments”

Swap Ratio
IBREL existing shares to be valued at Rs 92.50 per share
NAM shareholders will get 6.619 shares of IBREL for every 10 shares of NAM
Swap Ratio A – NAM Estates Merger into IBREL – 6,619 shares of IBREL for every 10,000 shares in NAM Estates
Swap Ratio B – Sky Assets Merger into IBREL – 5,406 shares of IBREL for every 10,000 shares in NAM Opco.
Blackstone Group submits a non-binding LOI for participation in the proposed merger
Alert: NAM & NAM Opco.is a subsidiary of the Embassy Group)

POST MERGER SHAREHOLDING
EMBASSY GROUP          44.9%
EXISTING IBREL PROMOTERS      9.8%
BLACKSTONE & EMBASSY INST. INVESTORS    19.1%
PUBLIC & INST. INVESTORS      26.2%

BENEFITS OF MERGER
Promoter with a sole focus on real estate
Footprint into the fastest growing commercial and residential market of Bengaluru
Opportunity to monetize a large pipeline of commercial development assets to listed REITs and institutional investors
Listed Platform has enhanced ability to attract foreign/domestic institutional investor base

JOINT ENTITY
Will Possess launched/planned area totalling to 80.8 Mn Sq. Ft.
Mix Of 47% residential, 53% commercial assets
Planned Commercial projects with annual rent potential of Rs. 4,241 Cr

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