Varkey's open offer for Everonn put on hold

Chennai-based Everonn Education Ltd on Tuesday said the Dubai-based Varkey Group's open offer, scheduled to open tomorrow, would not happen. The $2.5-billion group was planning to acquire another 20 per cent stake in Everonn (it already has 12 per cent) through the offer, for Rs 237 crore.

Managing director P Kishore did not comment on the development and nor did the company's spokesperson. Everonn told the Bombay Stock Exchange on Tuesday a revised schedule of activities on the offer would be announced after getting approval from the Securities and Exchange Board of India (Sebi)l.

The public announcement was made in September, when Kishore was in judicial custody. He was arrested on August 30 by the Central Bureau of Investigation, which said he had tried to bribe an income tax official to conceal Rs 116 crore of taxable income. On October 4, a court gave him bail and he resumed work on October 31.

During August, the Varkey Group, through its education arm, Gems Education, acquired 12 per cent (2.618 million equity shares) in Everonn through a preferential allotment for a consideration of Rs 138 crore. Once it got the entire 32 per cent, the group would have become Everonn's largest shareholder.