Financial Daily from THE HINDU group of publications
Thursday, Jan 01, 2004
Financial Daily from THE HINDU group of publications Thursday, Jan 01, 2004 |
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Corporate
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Preferential Allotments Singapore co also to invest in Matrix Labs Our Bureau
Hyderabad , Dec. 31 TEMASEK Holdings (Private) Ltd, Singapore will join Newbridge Capital in a significant investment into Matrix Laboratories Ltd (MLL), the Hyderabad-based, pharma major through the purchase of equity shares by way of preferential basis and secondary sale. The strategic investments to the tune of around Rs 607.5 crore by the duo are considered one of the biggest in the Indian Pharma sector. The Board of MLL, which met today approved the participation of Temasek Holdings, through one of the latter's investment vehicles. The MLL Board of Directors, had in the earlier meeting on December 29, approved the investment proposal of Newbridge Capital and other investors at Rs 1,500 per share through a combination of preferential allotment and secondary sale by existing shareholders. The pricing of the share was about 2 per cent premium to the closing stock price of Rs 1,476.25 as on December 26, 2003. While the amount to be raised through the Preferential Allotment of 22,50,000 shares was Rs 3,37.5 crore, the balance of Rs 270 crore was through the secondary sale of 18,00,000 shares, MLL officials said. Temasek Holdings and Newbridge Capital will participate equally in both the preferential equity and the secondary sale. The combination would be acquiring a minimum of 14.9 per cent of the fully diluted equity capital of Matrix, the official said. Temasek Holdings is a wholly owned by the Ministry of Finance, Government of Singapore. It holds and manages investments in companies that are engaged in a wide range of business activities in ports, shipping & logistics, banking and financial services, airlines, telecom & media, power and railways. The total market value of listed Temasek linked companies was of the order of $75 billion, according to MLL. For Temasek Holdings, this is considered one of the first major investments in India. The MLL board okayed `no objection' for the strategic investors to approach the Foreign Investment Promotion Board (FIPB) to obtain its approval. It has also approved a Notice for an Extraordinary General Meeting of its shareholders on January 28, 2004 to approve these decisions. MLL, is a leading Indian API manufacturer, which has seen remarkable year on year growth of 334 percent in financial year 2002-03 with net sales of Rs 398 crore, with 70 per cent of its products exported to leading pharma companies across the US and Europe.
More Stories on : Preferential Allotments | Pharmaceuticals
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