M. Ramesh

Chennai, Oct. 18

SHAREHOLDERS of NEPC India will get 12.5 shares in the newly formed special purpose vehicle, Southern Windfarms Pvt Ltd, for every 100 shares held in NEPC India, the Managing Director of the company, Mr Tirupathi Khemka, told Business Line on Tuesday.

NEPC India on Monday announced the sale of the wind energy division to Southern Windfarms Pvt Ltd, a company formed by a group of investors, which include the Khemka family.

Southern Windfarms (whose name could change) will be listed on the stock exchanges. The restructure move will also result in NEPC India becoming a totally debt-free company.

For a consideration of Rs 153.59 crore, NEPC India will transfer the entire aviation business tower manufacturing and assembly facilities in Pondicherry, a company-owned windfarm, maintenance contracts for more than 1,000 windmills and the NEPC brand to Southern Windfarms. Of the consideration, Rs 135 crore will be paid directly to NEPC India's secured and unsecured creditors. For the balance, NEPC India's shareholders will get shares in the special purpose company.

After the sale, NEPC India will have only one division - aviation.

The company has two aviation licences, one its own and another which it obtained when it acquired Damania Airways. The licences can be renewed upon payment of dues to airport authorities and the oil companies, although NEPC believes it has to, not pay, but receive money from them. The matter is in court, but in any case the licences are renewable.

Mr Khemka said the NEPC group was talking to two international companies and one national aviation firm for partnering in aviation business. The partner will essentially run the business.

Similarly, the wind energy business of the group will be run by Southern Windfarms. Shareholders of NEPC India will continue to hold shares in the company and also get additional shares in Southern Windfarms (12.5 for every 100).

The group is also close to announcing a tie-up with an international company for technology for high-end wind turbines, which can generate electricity from even low to very low wind speed areas, Mr Khemka said.

(This article was published in the Business Line print edition dated October 19, 2005)
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