Indiabulls Real Estate Ltd to enter into arrangements with Dev Property Development plc

Indiabulls Financial Services Ltd has announced that Indiabulls Real Estate Ltd (IREL), is proposing to enter into arrangements with Dev Property Development plc., a Company incorporated in the Isle of Man ("Dev"), whereby Dev shall subscribe to new shares and also acquire a minority shareholding from the Company, in the following project Companies:

a) Indiabulls Property Pvt Ltd ("IPPL") - which is developing Jupiter Mills.

b) Indiabulls Real Estate Company Pvt Ltd ("IRECPL") - which is developing Elphinstone Mills; and

C) Indiabulls Infrastructure Development Ltd ("IIDL") - which is developing the Raigad SEZ.

Further the Company has informed that, the Company has entered into share purchase and subscription agreements as well as shareholders' agreements in relation to the above and Dev will acquire a minority shareholding in the project Companies as mentioned above upon completion of all closing conditions.

As part of the series of transactions, upon completion IREL will receive a total consideration of Rs 437.4 crore for sale of partial stake in IPPL and IRECPL. Additionally, IPPL, IRECPL and IIDL will receive a total of Rs 617.9 crore as fresh equity capital from subsidiaries of Dev.

Further, Dev has completed an initial public offering of its ordinary shares for a total amount of Rs 1200 crore (i.e. GBP 138 million) and shall be listed on the Alternative Investment Market of the London Stock Exchange plc. The transaction is expected to close during the course of next week.

Source : Equity Bulls

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