Everonn Education Limited on Wednesday got shareholders’ nod to dilute its 12 per cent to Dubai-based Varkey Group for a consideration of around Rs 138 crore. The approval was obtained at the company’s extraordinary general meeting held here. The said acquisition by the $2.5-billion group will be through a preferential allotment.
The city-based education services provider allocated 2.6 million equity shares at Rs 528 each. “The company has witnessed significant growth in the last three years. It has formulated expansion plans in terms of enhancing its capacities and geographical presence. Taking into account the opportunities as stated, the company would like to induct a strategic partner as a co-promoter to take advantage of business synergies,” Everonn said in an explanatory note to its shareholders on Wednesday. “There would be a change in control of the management of the company after the completion of the open offer and the proposed allotment,” it added.
Everonn’s promoter P Kishore was arrested on August 30 on charges of bribing an Income Tax official and for concealing taxable income of Rs 116 crore. After the detection of taxable income, he contacted the Additional Commissioner through a Chartered Accountant to reduce the income tax liability. After holding negotiations, he requested the Additional Commissioner to suppress Rs 60 crore of the total taxable income, according to CBI.
The shareholding pattern post-preferential issue (after conversion of warrants) would change, said the note. Promoter and promoter group holding will be increased to 44.03 per cent from 42.28 per cent. After allotment of shares, it will be increased to 50.57 per cent.
Varkey plans to buy another 20 per cent through an open offer, some time in November or December, according to a company representative. The total consideration for the offer is estimated to be around Rs 236.73 crore, according to the offer document.
This would be possible upon completion of the allotment and considering that Sunny Varkey and Sherly Varkey, persons acting in concert with the proposed allottee, will own more than 15 per cent of the post-preferential issue equity capital of the company.
The shareholdings of both these persons will be added to on Wednesday’s preferential allotment of 12 per cent.
Everonn’s stock prices closed 0.75 per cent up at Rs 375.60 a share on the Bombay Stock Exchange.
On September 19, an agreement was signed between Varkey Group, Nikhil-Gandhi-promoted SKIL Infrastructure and Everonn by which the Group acquired 12 per cent stake for an investment of Rs 138.23 crore. This was done through preferential allotment.
