Embassy buys 14% in Indiabulls Real Estate in bulk deal

11MUMBAI: Embassy Property Developmentson Friday bought an around 14% stake in Indiabulls Real EstateNSE -2.93 % from its promoter through a bulk deal on the stock exchanges.

The deal is part of a three-stage transaction under which a Blackstone Group-Embassy alliance will be acquiring Indiabulls group chairman Sameer Gehlaut’s 39.5% stake in the real estate company for Rs 2,700 crore.

As per the terms, Blackstone-Embassy will acquire Gehlaut’s remaining stake of over 24% in 6-8 weeks and then make an open offer to the company’s shareholders.

On Friday, Embassy acquired nearly 6.31 crore Indiabulls Real Estate shares at a weighted average price of Rs 150.45 each. The stock closed 2.6% lower at Rs 128.20 on the Bombay Stock Exchange, after touching an intra-day high of Rs 151.

Indiabulls Real Estate has 23.5 million sq ft of residential and 2.4 million sq ft of commercial projects under construction. The deal puts its enterprise value at nearly Rs 7,000 crore.

Blackstone and Embassy are planning to keep the realty developer listed after the conclusion of the transaction and make it the alliance’s residential platform. This is the first time that Blackstone is acquiring a listed real estate company in India.

[“source=economictimes.indiatimes”]