Financial Daily from THE HINDU group of publications
Tuesday, Dec 30, 2003
Financial Daily from THE HINDU group of publications Tuesday, Dec 30, 2003 |
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Corporate
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Mergers & Acquisitions Matrix clears investment plan of Newbridge Capital Our Bureau
Hyderabad , Dec. 29 THE board of directors of Matrix Laboratories Ltd today approved an investment proposal by Newbridge Capital and other investors at Rs 1,500 per share through a combination of preferential allotment and secondary sale of existing shareholders. Under the strategic investment, Newbridge Capital, an investment firm which manages $2 billion of capital would acquire a minimum of 14.9 per cent of the fully diluted equity capital of Matrix. The pricing is about 2 per cent premium to the closing stock price of Rs 1,476.25 as on December 26. Matrix Laboratories hopes to raise around Rs 607.5 crore through these two routes. While the total amount proposed to be raised through the preferential allotment of 22,50,000 shares would be Rs 337.5 crore, the amount expected from the secondary sale by the existing shareholders up to 18,00,000 shares is of the order of Rs 270 crore. The board also approved a notice calling for an extraordinary general meeting of its shareholders on January 28, 2004 to approve the preferential allotment of shares to Newbridge and other investors, according to a company press release. While Rs 270 crore would be for promoters, the overall funds raised through these measures were for retiring long-term debts, expenditure on research and development (R&D), working capital requirements for the strengthening of the facilities for production of anti-retroviral drugs (ARVs) and finally for the general corporate requirement, a Matrix official told Business Line. DSP Merill Lynch is acting as the financial advisor to Newbridge Capital, which is focussed on making direct investments in Asia and in companies that have a sustainable long-term advantage over competitors and are seeking a partner who can provide financial capital and make significant contributions to operating businesses. The investment proposal is subject to confirmatory due diligence and regulatory approvals, the Matrix release said. Matrix Labs, which registered net sales of Rs 398 crore at the end of fiscal 2002-03, is one of the leading Indian API manufacturers, with over 100 R&D scientists. It has recently won a contract from the Clinton Foundation for the supply of ARVs to fight HIV/AIDS.
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