The Government of Singapore Investment Corporation’s (GIC) step-down subsidiary successfully acquired 2.56 crore shares of Nirlon via the recently concluded open offer. The Singapore sovereign wealth fund, through its arm Reco Berry, acquired 28.41% stake in the IT park company at R222 per share, valuing the open offer transaction at R568 crore.
The share acquisition was part of the mandatory open offer Reco Berry had to make after it had agreed to acquire up to 39.2% stake in Nirlon, in December. Under the Securities and Exchange Board of India (Sebi) takeover regulations, an acquirer has to make a mandatory open offer for at least another 26% stake if it acquires 25% in a company or assumes ‘control’.
Following the transaction that began on March 18 and ended March 31, Reco Berry’s holding in the company stands at 62.6%. The deal is valued at R1,252 crore or $198 million at the current dollar-rupee exchange rate of around R63.
The main real estate asset Nirlon owns is the Nirlon Knowledge Park, comprising seven commercial office blocks spread across a total area of 3.3 million square feet in the western suburb of Goregaon.
HSBC Securities and Kotak Investment Banking were the joint managers to GIC’s offer.
GIC in December had said it would be acquiring up to 6.27 crore shares from the existing promoters and other shareholders of Nirlon at a price not exceeding R222, and follow it up with an offer to the public to purchase an additional 2.56 crore shares.