Roassari Biotech Acquisition, JustDial Aquisition

Rossari Biotech plans on acquiring a specialty chemicals business
Tristar Intermediates' equity share capital will be acquired in its entirety by Rossari. 
Upon completion of the transaction, 76 percent of the equity share capital will be acquired, with the remaining 24 percent acquired over the next three years.
​
Tristar Intermediates' equity share capital will be acquired in its entirety by Rossari. 
Upon completion of the transaction, 76 percent of the equity share capital will be acquired, with the remaining 24 percent acquired over the next three years. Rossari intends to fund the investment using cash on its balance sheet and will not take on any debt to do so.

Rossari has given a statement on the current acquisition stating “The transaction brings together two high-potential companies within the speciality chemical space. The blend of capabilities will add scale, provide cross-selling opportunities, and accelerate growth for Rossari, while significantly enhancing value creation in the longer term. The synergistic acquisition provides Rossari with an enhanced portfolio of products, stronger presence in new and untapped international markets and access to newer technologies."
​
The executive chairman, Edward Menezes and the managing director, Sunil Chari, believe that the combined competencies will propel them forward in the high-potential product areas of personal care and home care, among others. Business efficiencies will be boosted by the inclusion of new foreign markets, cross-selling opportunities, personnel, and technical know-how.

​Reliance Retail Acquires JustDial for ₹5,719 crore
Reliance is acquiring 40.95 percent of JustDial for Rs 3,497 crore by subscribing to preferred shares and purchasing shares from the company's principal proprietor V S S Mani and his family. It would also launch an open offer to JustDial's public stockholders for an additional 26 percent, valued at Rs 2,222 crore. Reliance would make an open offer to non-promoter shareholders of JustDial for around Rs 1,022 per share. It will subsequently launch an open offer for 26% of the company, in compliance with Securities and Exchange Board of India (SEBI) laws, for Rs 2,222 crore. Mani will remain the company's managing director and chief executive.

As of June 30, 2021, the promoters together owned 35.32 percent of Just Dial. They will be left with 10.7% of the increased capital after this deal. The promoters and other members of the present 'promoter and promoter group' will continue to be categorised as members of the JustDial's 'promoter and promoter group.' However, Reliance Retail will have total control of the company, and under the shareholders' agreement, VSS Mani and Anita Mani, who are currently part of the promoter and promoter group, must exercise their voting rights according to Reliance Retail's instructions.

​JustDial's closing price was discounted by around 5% in the transaction, which was revealed after market hours on Friday. JustDial's stock ended the day at Rs 1,073, down 3% from the previous close.

JustDial's acquisition will allow it to better use its merchant database as it aspires to triple its size in the next three to five years and create a million jobs. The retail division's income in FY21 was Rs 1.53 trillion, approximately six times that of its nearest competitor. JustDial's growth and expansion will be aided by the funds invested by RRVL(Reliance Retail Ventures Limited), which will enable the company to become a comprehensive local listing and commerce platform.

Written By: Kovid Gopikaramanan