Citigroup to buy stake in Ansal API

November 16, 2006	(Be the first to rate this story!)  Loading ...
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As the dispute over Citigroup taking stake in Ansal API (Ansal Properties and Infrastructure) is resolved, the deal is likely to be completed soon. Citigroup, in October 2005, in a deal to buy stake in Emaar-MGF — a 50:50 JV between Dubai-based Emaar and Delhi-based MGF group — had also entered into a contract, under which it was restricted from taking stake in any other real estate company in North India.

It is learnt that invoking this exclusivity clause Emaar-MGF had raised objection to the proposed deal between Citigroup and Ansal. However, Citigroup’s private equity head Ajay Relan said the group is investing in Ansal API through a different arm which has not taken stake in Emaar-MGF. He added that the arm which had taken stake in Emaar-MGF is restricted from taking stake in any real estate firm in the country.

Emaar-MGF CEO Shravan Gupta said legally, Emaar-MGF does not have any objection on Citigroup-Ansal API deal if it is carried out through an arm other than the one that has taken stake in Emaar-MGF. He said things have been sorted out as Citigroup has explained its position

Source from Times Of India
www.timesofindia.indiatimes.com

News Published Under:   Real Estate Developers |

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