Indiabulls Real Estate Ltd (IBREL) on Wednesday said the agreement for proposed merger of Embassy Group's certain realty projects with itself is expected to be signed before July 15.
In January, Mumbai-based IBREL announced its proposal of the merger of certain ongoing, completed and planned residential and commercial projects of Bengaluru-based Embassy Property Developments Pvt Ltd with Indiabulls Real Estate Ltd.
"Lockdown restrictions imposed due to global spread of coronavirus (COVID-19) had impacted the progress of the merger process.
"With the lockdown relaxations from June 3, 2020, best effort endeavours are now being made by Embassy and IBREL to execute transaction documents on or before July 15, 2020," IBREL said in a regulatory filing.
A scheme of amalgamation for the proposed merger will accordingly be placed before the board of directors of the company for its approval, it added.
In June 2019, the promoters of IBREL sold 14 percent stake through open market transactions to Embassy Group for Rs 950 crore, as part of their strategy to focus on financial services and exit from realty business.
With this deal, Bengaluru-based developer Embassy Group sought to enter into Mumbai and Delhi-NCR markets, the two biggest property markets in the country.
Indiabulls Group plans to merge over dozen remaining assets of IBREL with a new entity that will be led by Embassy Group, sources had said in January.
Before this merger proposal with the Embassy group, the IBREL sold many commercial assets to global investment firm Blackstone.
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