Aurum Platz IT will pay Rs 77 per share to buy the entire promoter shareholding in Majesco, according to the definitive share purchase agreement.
Aurum Platz IT has also made a mandatory open offer to buy up to 26% stake from the public at the same price, which is a premium of about 14% over Majesco’s volume weighted average market price during the previous 60-day trading period and 21.5% over its last traded price on Friday.
The deal, including the open offer, is worth around Rs 90 crore.
Shares of Majesco closed at Rs 63.40, down 4.9% on Friday.
“Majesco is a good strategic fit for Aurum’s real estate value chain,” said Ashish Deora, Founder and CEO of Aurum Ventures.
“The acquisition portrays our capability, expertise and confidence in real estate which is going through a paradigm shift. We are evaluating strategies and will come out with a growth roadmap in the coming months,” Deora said.
The deal is significant since a realty firm is acquiring a listed technology company and will provide Aurum Ventures control of a corporate entity that is listed on both the major stock exchanges as well as the flexibility to explore new strategic business streams.
The entire transaction is expected to conclude over the next few months.
Majesco has a cash balance of over Rs 100 crore, along with a constructed and under-construction area of 160,000 square feet. Aurum Ventures is planning to use a portion of the available cash to upgrade the real estate infrastructure and the rest for the company’s growth.
“We have till date delivered significant value to the Majesco shareholders and our decision to hand over control to Aurum Ventures Group was made keeping in mind the long-term interest of the shareholders after evaluating various options,” said Ketan Mehta, Founder and Non-Executive Director of Majesco. “Aurum Ventures is an established player in the real estate business and we thought it is a good fit for them.”
DAM Capital Advisors, formerly known as IDFC Securities, acted as the sole advisor to the acquirer and manager to the open offer.
In May 2018, Aurum Ventures had sold two buildings with a combined built-up area of 1.4 million sq ft for Rs 930 crore to Singapore’s sovereign wealth fund.
The company is developing a township – Q Parc – in Navi Mumbai including a Special Economic Zone, office spaces, walk-to-work residences and lifestyle retail.