Acquisition of Majority Stake in Bigbox Ventures Private Limited by EFC Limited

On June 27, 2024, the Board of Directors of EFC Limited (MWOS) approved the execution of a Share Subscription Agreement (SSA) for the acquisition of a 51% stake in Bigbox Ventures Private Limited in their meeting.

Upon completing this acquisition, Bigbox Ventures Private Limited will become a subsidiary of EFC Limited.

Regarding the acquisition of Bigbox Ventures Private Limited by EFC Limited, it’s important to note that this transaction does not constitute a related party transaction. EFC Limited confirms that neither its promoters nor any group companies are interested in Bigbox.

As part of the acquisition process, Directors or Key Management Personnel (KMP) of EFC Limited may act as Nominee Directors for Bigbox. The subscription price for equity shares in Bigbox is ₹4,900 per share, including a premium of ₹4,890 per share, ensuring that the transaction is conducted at arm’s length.

Objective of Acquisition

The acquisition aims to strengthen EFC (I) Ltd’s presence in the same industry as Bigbox. It aligns with EFC (I) Ltd’s strategy to enhance operations and expand its market footprint, benefiting its customers and stakeholders. They are committed to ensuring a seamless integration process that is in compliance with regulations.

Acquisition Details

EFC Limited’s acquisition of Bigbox Ventures Private Limited is expected to be completed within approximately 1 month. The consideration for this acquisition will be cash. EFC Limited will acquire a 51% stake in Bigbox, equivalent to 10,409 equity shares priced at ₹4,900 per share, totalling ₹5,10,04,100.

About Bigbox

Bigbox specialises in providing flexible, secure, and modern work environments that enhance the value of assets. It operates within the Managed Office and Co-working Space industry, aligning closely with EFC Limited’s core business. It operates over 3,000 workstations spread across 9 locations in Pune, aiming to deliver a top-notch workplace experience to its clients.

About EFC (I) Ltd

EFC (I) Ltd, formerly Amani Trading and Exports Ltd, was established in 1984. It specialises in providing office space solutions through its Entrepreneurial Facilitation Centre (EFC), offering over 20,000 seats under its Enterprise Solutions category.

On June 28, 2024, the share price of EFC (I) Ltd opened at ₹545.00, touching the day’s high at ₹558.90, as of 10:07 AM on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.