Israel-based U Dori Group is likely to acquire 50 per cent stake in Hyderabad-based Surana Group for Rs.125 crore.

The two companies are likely to form a JV for setting up a residential group for housing and construction development project in Hyderabad. U Dori will invest either on its own or through its subsidiaries, Dori Global and Gazit Globe.

Surana Group is planning to merge Bhagyanagar Properties and Scientia Infocom to create a SPV that will act as a JV between the Surana Group and U Dori. These two Surana Group companies have a land bank of 25 acre in Hyderabad for setting up a group housing society.

At present, Bhagyanagar Properties and Scientia Infocom are in the process of obtaining necessary approvals such as layout plans, land use change, payment of external developmental charge from the state government and concerned municipal bodies.

As per the agreement between the two parties, if all the approvals are not obtained by the Surana subsidiaries in a year, U Dori Group will have an option to either give a grace period of 12 months for obtaining the approvals or walk out of the project by selling its shareholding in the JV company.