The Hindu Business Line : Reliance Capital to buy 14.96% stake in Spanco for Rs 32.2 cr

RELIANCE Capital Ltd on Tuesday announced that it would be acquiring a 14.96 per cent stake in Spanco Telesystems and Solutions Ltd for Rs 32.2 crore.

Reliance Capital has agreed to subscribe to 29.80 lakh equity shares and 5.7 lakh warrants, with an entitlement to subscribe to equity shares of Spanco at a price of Rs 90.90 per share. The stake of 14.96 per cent will be in the fully expanded equity share capital of Spanco under a preferential issue made by Spanco.

The board of directors of Spanco has approved the issue of the shares and warrants. This will be subject to the shareholders' approval at an annual general meeting scheduled for September 15.

The board also decided to obtain authority from the shareholders to issue financial instruments worth Rs 120 crore to part finance the expansion programme of the company (in suppression of the existing resolution passed by the shareholders at their extraordinary general meeting/ EGM held on August 8.)

Spanco has also informed that the board of directors had discussed the proposed issue and the allotment of 22 lakh warrants on a preferential basis as approved by the members at their EGM held on August 8. The board adjourned this agenda and decided to consider the same at a meeting held on Monday. Spanco carries out integration for telecom carriers in the country and also offers solutions for network infrastructure. It has domestic and international call centre operations. The ADA Enterprises group, headed by Mr Anil Ambani, under which Reliance Capital also falls, has already acquired the content company Adlabs and has an agreement to acquire the stake of the promoters in AMP Sanmar Life Insurance.

ADA Enterprise group officials were not available to explain why the group was acquiring a technology-related company through Reliance Capital and not through one of its Reliance Infocomm group companies.

The Spanco scrip closed at Rs 129.45 on the BSE on Tuesday, 12 points lower than Monday's close. The scrip, which had been hovering in the Rs 90-range in early August, had started gaining on talks of the deal with Reliance Capital.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Does economy need the bull run?

Reliance Capital to buy 14.96% stake in Spanco for Rs 32.2 cr

Bear domination

Sensex sheds 134 on profit-booking

Color Chips rises on valuation

Prime Property sizzles

Patel Engg promoters offload 10% stake — Fidelity, ICICI Mutual buyers

Internet trading of stocks yet to take off

`Sheer value buying may be a difficult proposition'

Indices tumble on across-the-board selling