Shares of Route Mobile hit a 52-week high on Monday after the company announced that its promoters entered into a share purchase agreement with Proximus Opal S.A. / N.V. and Proximus S.A. to sell their entire 57.56 percent shareholding.
The exchange filing stated that the promoters will sell their entire 3.64 crore shares to Proximus at Rs 1,626.4 per share, which is nearly the same as Friday's closing price. The total consideration for the same will amount to Rs 5,922.4 crore.
Post this transaction, Proximus Opal will make an open offer to acquire another 1.64 crore shares or 26 percent of the expanded voting share capital from the public shareholders of Route Mobile. The price of the Open Offer is also Rs 1,626.4 per share, which amounts to a total consideration of Rs 2,675 crore, subject to statutory approvals.
For a subsequent transaction, Proximus has also entered into a share sale agreement with Private Equity firm Clear Bridge Ventures LLP, an affiliate company, pursuant to which, Clear Bridge will acquire a minority, non-controlling investment of up to 14.5 percent for a total consideration of €299 million.
Morgan Stanley was the exclusive financial advisor to Proximus for this transaction.
| Selling Shareholder | Stake Sold |
| Chandrakant J Gupta (HUF) | 0.57% |
| Rajdipkumar C Gupta (HUF) | 0.47% |
| Sandipkumar C Gupta (HUF) | 0.47% |
| Sandipkumar Chandrakant Gupta | 14.63% |
| Rajdipkumar Chandrakant Gupta | 14.63% |
| Chandrakant Jagannath Gupta | 3.64% |
| Chamelidevi Chandrakant Gupta | 3.64% |
| Sarika R Gupta | 5.84% |
| Sunita S Gupta | 5.76% |
| CC Gupta Family Trust | 7.90% |
This is the third transaction in the CPaaS space, which stands for Communications Platform as a Service. In June this year, Tanla Platforms had approved the acquisition of ValueFirst Digital Media Pvt. Ltd., India's third-largest CPaaS player for $42 million.
In the same month, Tata Communications had entered into an agreement to acquire US-based CPaaS company Kaleyra Inc. for an enterprise value of $250 million.
After rising as much as 8.2 percent, shares of Route Mobile have given up all of the gains and are currently trading 7 percent lower at Rs 1,520.05.
(With Inputs From Reema Tendulkar.)
First Published: Jul 17, 2023 9:35 AM IST
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