Everonn to sell stake to Varkey Group for Rs 138 crore
20 Sep 2011
Learning solutions provider Everonn Education's board approved the issue of 2.62 million shares on preferential basis for Rs138 crore to Dubai-based Varkey Group Ltd, making the latter a co-founder of the company.
Everonn's board also approved raising the investment limit in the firm by non-residential Indian investors to 24 per cent from 10 per cent earlier.
The deal, which was approved by Everonn's board at Rs528 a share (51 per cent premium to Monday's closing), will require Varkey Group to launch an open offer, the company said in a statement.
Unlisted SKIL Infrastructure, the holding firm of Pipavav Defence and Offshore, holds about 21 per cent in Everonn (See: SKIL Infrastructure makes 20-per cent open offer for Everonn).
''We are extremely thankful to the SKIL group for having supported the management throughout and taken the initiative to identify the Varkey Group as Strategic Investor. I am sure that this will raise the operations of Everonn to greater levels,'' Everonn Education's Chief Executive Officer and director Susha John said.
''The strategic investors have shown great faith and confidence in the existing management. We are confident that the Varkey Group, along with SKIL, will not only help Everonn in achieving our goals to create value to all our stakeholders but also realize our dream to become a leading global education company,'' John said.
Following the announcement, Everonn Education's shares rose 5 per cent, hitting the circuit breaker, to Rs367.20.
Earlier this month, Everonn appointed Susha John as new CEO and conferred her with the powers of managing director after its managing director was arrested in an alleged bribery case.
Following the arrest, its non-executive chairman Jamshed J Irani had resigned (See: Irani's resignation a blow to crisis-ridden Everonn Education).
