Infibeam takes control in CC Avenue

AHMEDABAD: Infibeam Incorporation Ltd, India’s first listed ecommerce entity, takes control in CC Avenue by investing Rs 210 crore, approved by the board today. The company will have controlling stake once the merge process is completed.

The company has invested Rs 150 crore for acquiring 7.50 per cent equity stake to take control in CC Avenue. Earlier, the company’s wholly owned subsidiary NSI Infinium Global Pvt Ltd had invested Rs 60 crore to acquire 3.85 per cent stake of CC Avenue.

However, in today’s board meeting it further decided that the parent company Infibeam Incorporation Ltd would pay Rs 60 crore to its wholly owned subsidiary NSI Infinium Global Pvt Ltd and would takeover 3.85 per cent stake of CC Avenue. With this, investment made by NSI in CC Avenue would be entirely liquidated.

Thus in total 11.35 per cent stake of CC Avenue will be held by the parent company Infibeam Incorporation Ltd that would give them control over the CC Avenue with a total investment of Rs 210 crore. Company informed the bourse, that it has signed a binding addendum to the Memorandum of Understanding (MoU) and made payment for the same.

Once, the entire process of merge is completed, Infibeam Corporation Ltd will have controlling stake in CC Avenue. At least 51 per cent is required to have a controlling stake.