• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Brand Quest
• The New Manager
• BL Club
• Smartbuy
• Books

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth
• Events 2007

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

New Delhi, Dec. 26 Non-banking financial company RBS Credit and Financial Developments is planning to issue and allot 25.39 lakh equity shares to MESEA Infra Invest Company for Rs 191.2 crore.

It has sought the approval of the Foreign Investment Promotion Board (FIPB) to utilise the funds raised from MESEA Infra Invest Company for further downstream investment into Simplex Infrastructures Ltd.

MESEA Infra Invest Company is incorporated in Ras Al Khaimah Free Trade Zone, and has its registered office in Dubai. The focus of the company is to invest in infrastructure and construction companies in the Middle East, South Asia and South-East Asia.

Sources said that RBS Credit and Financial Developments holds 53 lakh fully convertible warrants issued by Simplex as well as 43.67 lakh equity shares of Simplex, totalling to nearly 17.65 per cent of the latter’s shareholding. Simplex is into construction and engineering services contracting company.

In order to capitalise on the future growth opportunities in the construction services sector in India, Simplex believes it is prudent to raise funding for the growth. The conversion of warrants held by RBS Credit and Financial Developments in Simplex would lead to an infusion of funds into Simplex. In order to fund the conversion of warrants by the company and to receive a stake in the profitable construction services industry, MESEA Infra seeks to invest in RBS Credit Financial Developments.

It is proposed that the RBS would act as the holding company for Simplex and other companies in construction services sector.

MESEA Infra wants the funds invested in RBS to be invested further and exclusively into Simplex to fund its operations.

Despite repeated attempts, officials of RBS could not be reached.

More Stories on : Stocks | Foreign Institutional Investors | Infrastructure | Mergers & Acquisitions

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

Copyright © 2008, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line