Coforge has received a significant regulatory approval from the Reserve Bank of India (RBI) for its ongoing acquisition of Encora. The approval pertains to an Overseas Direct Investment exceeding USD 1 billion under the Foreign Exchange Management (Overseas Investment) Rules. This development marks a crucial step in Coforge‘s acquisition strategy.
The acquisition process, which involves a share subscription and share purchase agreement with Encora US Holdco, Inc. and Encora Holdings Ltd., has been subject to multiple regulatory approvals across various jurisdictions. Coforge had previously secured approvals under the Hart-Scott-Rodino (HSR) Antitrust Improvement Act in the United States, as well as shareholder approval via postal ballot for preferential allotment, debt funding, and special rights under the Share Purchase Agreement to Advent. Additionally, competition-related approvals have been obtained in jurisdictions including Australia.
Coforge continues to monitor the progress of other necessary regulatory approvals in various jurisdictions, which are currently in advanced stages of processing. The company has committed to updating the stock exchanges promptly as these approvals are granted.
This disclosure is part of Coforge’s ongoing efforts to keep exchanges and members informed about the regulatory developments related to the Encora acquisition.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).