Eternal Ltd has announced its intention to acquire a 5.4 percent stake in the gated community management technology platform MyGate. The acquisition will be conducted through a share-swap transaction valued at approximately Rs 156 crore, as stated in an exchange filing on Wednesday.
Under the terms of the deal, Eternal will acquire 184,091 Series C1 compulsorily convertible preference shares and 164 equity shares of Vivish Technologies Pvt Ltd, the operator of MyGate. In exchange, Eternal will issue 11,214 of its Series B compulsorily convertible preference shares and 10 equity shares it holds in the company Adonmo.
This transaction is part of Eternal's oader strategy to invest beyond its core businesses of food delivery and quick commerce. With this move, the company is expanding its exposure to adjacent consumer-facing technology platforms.
The filing stated that the acquisition is part of a proposed merger involving the advertising technology company Adonmo. It is expected that upon completion of this transaction, Eternal's stake in MyGate will stand at 5.4 percent on a fully diluted basis.
However, it is projected that after the finalization of the larger proposed merger with Adonmo, Eternal's ultimate stake in MyGate will decrease to 4.4 percent. This investment highlights the growing interest of major tech companies in diversifying their investment portfolios and entering new markets.
MyGate is a leading platform in India that provides security and management services for residential communities, and this deal could help fuel its further growth and development.
Source: Exchange Filing
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