India’s Reliance Retail to buy Just Dial for $469 million
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Reliance Retail is to buy nearly 41 percent of search and database firm Just Dial for US$468.84 million.
Billionaire Mukesh Ambani-owned Reliance Retail will also make an open offer to public shareholders of Just Dial to acquire an additional 26 percent, according to regulatory requirements.
Reliance has been on an acquisition spree to ramp up its online retail offerings and, over the past three years, has bought British toy retailer Hamleys, music streaming service Saavn, online furniture retailer Urban Ladder and e-pharmacy Netmeds.
The deal with Just Dial, subject to shareholder and other approvals, will help Reliance get access to the company’s massive merchant database that spans across the country.
The deal will boost “the digital ecosystem for millions of our partner merchants, micro, small and medium enterprises,” Isha Ambani, a director at Reliance Retail, said in the statement.
Just Dial has a database of about 30.4 million listings as of March 31 and gets consumer traffic of about 129.1 million unique users each quarter.
The capital infusion from the deal will help Just Dial expand discovery on its platform and boost transactions for millions of its products and services.
Just Dial’s MD VSS Mani will continue to lead the company, the statement said.
Questions & Answers
Q.What is the primary reason Reliance Retail is acquiring Just Dial?
What is the primary reason Reliance Retail is acquiring Just Dial?
Reliance Retail is buying Just Dial to gain access to its extensive merchant database, which will enhance its digital ecosystem for a wide range of partner merchants and small to medium enterprises across India.
Q.What is the total stake Reliance Retail aims to acquire in Just Dial?
What is the total stake Reliance Retail aims to acquire in Just Dial?
Reliance Retail plans to acquire nearly 41 percent of Just Dial initially. Also, it will make an open offer to public shareholders to acquire an extra 26 percent, aiming for a substantial majority stake.
Q.How will Just Dial benefit from this acquisition?
How will Just Dial benefit from this acquisition?
Just Dial will receive a capital infusion from the deal. This funding is intended to help the company expand discovery on its platform and significantly boost transactions for its various products and services.
Q.Who will continue to manage Just Dial after the acquisition?
Who will continue to manage Just Dial after the acquisition?
VSS Mani, Just Dial's Managing Director, will continue to lead the company. The article states that he will retain his position following the acquisition by Reliance Retail.
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