Financial Daily from THE HINDU group of publications
Tuesday, Apr 27, 2004
Financial Daily from THE HINDU group of publications Tuesday, Apr 27, 2004 |
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Corporate
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Mergers & Acquisitions ICICI Venture set to pick up 14.96% stake in Samtel Color C.R. Sukumar
Hyderabad , April 26 ICICI Venture Fund Management Company is set to pick up 14.96 per cent equity holding in Samtel Color Ltd (SCL), the Rs 900-crore picture tube manufacturer. ICICI Venture is acting as an investment manager on behalf of Western India Trustee and Executor Company Ltd, which is a trustee to the India Advantage Fund-II. The Samtel management has decided to issue compulsorily partly convertible debentures (CPCDs) aggregating Rs 50 crore with a coupon of 7 per cent per annum and also 12.5 lakh warrants having an option of conversion into equity shares on a preferential allotment basis in favour of ICICI Venture. The CPCDs will enable ICICI Venture to acquire 58.82 lakh equity shares of Rs 10 each, constituting a holding of 12.67 per cent in the Samtel's expanded equity base of Rs 46.42 crore. Further, ICICI Venture will acquire 12.5 lakh equity shares of Samtel through conversion of warrants, which will enable it acquire 2.29 per cent more stake in Samtel, taking its total holding to 14.96 per cent on the further expanded equity base of Rs 47.67 crore. As per the SEBI guidelines, the conversion price works out to Rs 50.62 per share. The current paid-up equity of Samtel stands at Rs 40.54 crore, of which the promoters hold 58.34 per cent, NRIs and OCBs 12.84 per cent, private corporate bodies 5.84 per cent, institutional investors 2.6 per cent and Indian public 20.38 per cent. Samtel has informed the stock exchanges that a resolution to offer holding in favour of ICICI Venture Fund was approved by its board recently. The preferential offer is being made to meet the funding requirements for repayment of high cost debt, capital expenditure for expansion of the existing capacity and working capital, the company said. On the expanded equity base of Rs 47.67 crore after the conversion of warrants, the holding of promoters group would come down to 49.61 per cent, of NRIs and OCBs to 10.92 per cent, private corporate bodies to 4.97 per cent, institutional investors to 2.21 per cent and of Indian public to 17.33 per cent.
More Stories on : Mergers & Acquisitions | Radio/TV | Venture Capital
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