The Competition Commission of India (CCI) announced that it has approved BREP Asia III India Holding Co VII’s proposal to acquire a 40 per cent stake in Kolte-Patil Developers Limited. “The combination envisages acquisition of 40 per cent shareholding in Kolte-Patil Developers Limited (Target) by BREP Asia III India Holding Co VII Pte Ltd (Acquirer) through a combination of share subscription and share purchase. The transaction also envisages acquisition of shares of the Target under open offer,” CCI said in release.
The acquirer is connected to funds that are overseen or managed by entities affiliated with Blackstone Inc, a global alternative asset management firm. The target company, meanwhile, is primarily engaged in the business of construction, development and sale of real estate.
The acquisition, it added, will be executed through two primary mechanisms—share subscription and share purchase.
Earlier in March, Blackstone had said that it will acquire a 40 per cent stake in Kolte-Patil Developers Ltd for Rs 1,150 crore, paving its way into the Indian residential market after having significant exposure in office, shopping mall, warehousing and date centre verticals of real estate.
The investment firm was to acquire a 14.3 per cent stake for Rs 417 crore through a preferential issue of equity shares and another 25.7 per cent stake from the promoters group for Rs 750 crore. Thereafter, it had said that the company has launched an open offer to acquire up to 26 per cent stake in Kolte-Patil Developers from public shareholders for Rs 758.56 crore.
Blackstone will acquire joint control over the company, along with the promoters.