LONDON (Alliance News) - Infrastructure India PLC Wednesday said it has entered into a subscription agreement with the affiliate of its majority indirect shareholder, which will underpin a proposed share placing to raise USD102 million.
The India-focused infrastructure investor said it has entered an agreement with Barnet Holdings Ltd, an affiliate of GGIC Ltd. The latter currently holds a 51.2% indirect interest in Infrastructure India.
Under the terms of the deal, Barnet will subscribe to 172.7 million shares from the 337.6 million Infrastructure India has proposed placing at 18 pence per share in order to raise USD102 million. Infrastructure India proposed the placing in July, with the 18 pence price representing a 24% premium to its closing price on July 14.
The deal is the second this year in which Infrastructure India has sought financing support from a GGIC affiliate. In May, it agreed a deal with Cedar Valley Financial Ltd for up to USD8.1 million in the form of an unsecured loan facility, with the funds to be used to invest in subsidiary Vikram Logistic and Maritime Services Private Ltd. Cedar Valley is also an affiliate of GGIC.
Infrastructure India shares were up 1.7% at 14.75 pence early Wednesday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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