In a major regulatory breakthrough, Coforge Ltd has received approval from the Reserve Bank of India for overseas direct investment exceeding $1 billion, paving the way for its proposed acquisition of Encora, as per a stock exchange filing.
The approval has been granted under the Foreign Exchange Management (Overseas Investment) Rules and removes a crucial hurdle in the transaction involving Encora US Holdco Inc. and Encora Holdings Ltd.
Coforge stated that this milestone builds on its earlier move to enter into a share subscription and share purchase agreement with the target entities, along with Encora Holdco Ltd and AI Altius Parent (Cayman) Ltd.
The company had already secured several key regulatory clearances before this development. These include approval under the Hart-Scott-Rodino Antitrust Improvement Act in the United States, shareholder approval through a postal ballot for critical matters such as preferential allotment and debt funding, and competition-related clearances across jurisdictions including Australia.
With the latest RBI approval in place, Coforge confirmed that “the remaining approvals are in advanced stages,” according to its filing.
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