Just Dial denies takeover talks with Google to exchanges; shares on BSE off highs

Shares of local search engine Just Dial on Friday rose 20 percent to hit Rs 549.85 after the Business Standard  reported that the US internet giant Google is in talks to acquire the company. At 12:50 p.m, the shares are trading up 7.27 percent at Rs 497.25.

The BS report said citing an investment banker that Google has been talking to Just Dial for a buyout for sometime. Both the companies have entered into an exclusive talk about two months back, the report said citing the banker.

“It may take some more time before the discussions are finalised,” the banker has been quoted as saying in the report.

However, after the shares zoomed both the BSE and NSE sought clarification from Just Dial on the media report. The company has told the bourses that there is no proposal for acquisition.

“We would like to clarify that as of now there is no proposal in respect of acquisition of business of Just Dial by Google and news published in Business standard dated 10 November 2017 is factually incorrect,” the company said in the clarification to the exchanges.

Recently, Just Dial reported about 26.5 percent rise in standalone net profit at Rs 37.5 crore for the September quarter.

The company had reported a net profit of Rs 29.6 crore in the corresponding quarter a year ago, Just Dial had said in a BSE filing.

Its revenue from operations during the quarter under review stood at Rs 194.4 crore as against Rs 180.3 crore in the year-ago period, up 7.9 percent, it added.

The company’s cash and investments stood at Rs 1,045.3 crore as on 30 September, 2017 compared to Rs 1,086.2 crore as on 30 June, 2017.

(With PTI inputs )