Check Credit Score
Check Credit Score
HomeNewsIndia

Pact for merger of Embassy Group's realty units with IBREL may be signed before July 15

In June 2019, the promoters of IBREL sold 14 percent stake through open market transactions to Embassy Group for Rs 950 crore, as part of their strategy to focus on financial services and exit from realty business.

June 03, 2020 / 11:13 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Indiabulls Real Estate Ltd (IBREL) on Wednesday said the agreement for proposed merger of Embassy Group's certain realty projects with itself is expected to be signed before July 15.

In January, Mumbai-based IBREL announced its proposal of the merger of certain ongoing, completed and planned residential and commercial projects of Bengaluru-based Embassy Property Developments Pvt Ltd with Indiabulls Real Estate Ltd.

"Lockdown restrictions imposed due to global spread of coronavirus (COVID-19) had impacted the progress of the merger process.

"With the lockdown relaxations from June 3, 2020, best effort endeavours are now being made by Embassy and IBREL to execute transaction documents on or before July 15, 2020," IBREL said in a regulatory filing.

A scheme of amalgamation for the proposed merger will accordingly be placed before the board of directors of the company for its approval, it added.

In June 2019, the promoters of IBREL sold 14 percent stake through open market transactions to Embassy Group for Rs 950 crore, as part of their strategy to focus on financial services and exit from realty business.

With this deal, Bengaluru-based developer Embassy Group sought to enter into Mumbai and Delhi-NCR markets, the two biggest property markets in the country.

Indiabulls Group plans to merge over dozen remaining assets of IBREL with a new entity that will be led by Embassy Group, sources had said in January.

Before this merger proposal with the Embassy group, the IBREL sold many commercial assets to global investment firm Blackstone.

PTI
first published: Jun 3, 2020 11:05 pm

Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347