Varkey Group makes open offer for additional 20% stake in Everonn

The Varkey Group that has taken up a strategic stake in the Chennai based education company, Everonn, has said that it will buy another 20% more of the company's stock at 528 rupees a share.

Earlier, on September 20, the group had acquired a 12% stake in the company for Rs 138 crore though preferential allotment.

Everonn provodies technology-based education services to schools. It is a competitor of another listed company Educomp Solutions.

Through the open offer Varkey Group plans to buy approximately 4.48 million additional shares. The offer opens on November 16 and it will close on December 5, stated ICICI Securities in a newspaper advertisement.

The group also holds an additional 4.19% stake in the company, Everonn Education.

Since, Indian laws require that if a company acquires 15% or more of another company then it must make an open offer to buy an additional 20%.

Background

The stock had fallen after its managing director P Kishore in an alleged bribery case. The stock price of the company took a plunge and reached its 52 week low on September 7, 2011, at Rs 247.

After that, the company's CEO, JJ Irani, resigned. Susha John, who was a whole-time director, was appointed as chief executive officer.

The share price has been on path of recovery since Varkey group picked a strategic stake in the company.

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