The Hindu Business Line : Deccan Gold up on investment hopes

Deccan Gold has been shining of late on the BSE on fresh investments prospects. Sun Group is slated to make fresh investments in Deccan Gold, promoted by Australian Indian Resources Pty (AIR), through Rama Mines (Mauritius) Ltd. In May 2006, Sun Group invested Rs 10.57 crore in Deccan for acquisition of 70 lakh shares of Re 1 each at a premium of Rs 14.10 per share through Sun Mining & Exploration Ltd Cyprus. It also picked up 1.1 crore optionally convertible warrants, conversion timeframe of which expires on October 31. Mr Vaidyanathan Sivakumar, group’s country head, who is on the Deccan’s board, told Business Line on Friday that the decision on the exercise of the option has not yet been taken. He, however, confirmed the recent departure of Mr Taveesh Pandey as Sun’s CIO, and also the other representative on the Deccan board, from Sun Group. Under the shareholder agreement, the warrants may be converted into shares of Re 1 each at an exercise price of Rs 15.10 each. If it opts for conversion, Sun’s stake would more than double in the enhanced capital. Unless it enjoys exemption (from takeover rules), now a non-promoter investor in Deccan, the exercise of option would trigger open offer of 20 per cent. The current foreign promoter, AIR, commands a controlling stake of 59.93 per cent, down from 69.21 per cent before Sun’s entry last year. The stock finished at Rs 19.49, a 5 per cent gain, with a volume of over 1.60 lakh shares. In the last one month, it has gained by 37.54 per cent. —

Jayanta Mallick

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