At the same time, RRVL has also confirmed that it will make an open public announcement to Just Dial shareholders for the acquisition of $289,300 (2.17 crore), representing an 26% equity stake in line with SEBI Takeover Regulations.
“Reliance is excited to partner with Justdial and Mr. VSS Mani, a first-generation entrepreneur, who has created a strong business through his business acumen and perseverance," said Isha Ambani, director of RRVL.
"The investment in Just Dial underlines our commitment to New Commerce by further boosting the digital ecosystem for millions of our partner merchants, micro, small and medium enterprises. We look forward to working with the highly experienced management team of Just Dial as we further expand the business going forward.”
In addition, RRVL, Just Dial and VSS Mani & others, have entered into definitive share agreements that includes shares at a preferential rate of $282,600 (2.12 crore) equity shares equal to 25.33% post preferential share capital at price per share of $13.63 (Rs 1,022).
The definitive agreements also make for the acquisition of $174,600 (1.31 crore) equity shares by RRVL from VSS Mani, equal to 15.62% post preferential share capital at a price of $13.60(Rs 1,020) per share. It also includes a shareholders agreement governing 'certain inter se rights and obligations between the parties".
“Nearly 25 years ago, we had a vision to build a connected single platform dedicated to providing fast, free, reliable and comprehensive information to our users and connect buyers to sellers," said VSS Mani, founder and CEO at Just Dial.
"Our vision has evolved to not only provide search and discovery but drive commerce across merchants through our B2B platform and enable further consumer to merchant commerce given our platform engagement. Our strategic partnership with Reliance enables us to realise this vision and transform the business going forward.”
Under the terms of the deal, VSS Mani will continue on as managing director and chief executive officer of Just Dial. While the funds from the sale will be used to fund "the growth and expansion of Just Dial into a comprehensive local listing and commerce platform".
This includes the expansion of Just Dial's discovery on its platform and enhancement of transactions for millions of products and services.
