18 Aug 2008 07:00
Great Eastern Energy Corporation Ltd.
18 August 2008
Great Eastern Energy Corporation Ltd
("Great Eastern Energy" or the "Company")
Extraordinary General Meeting
Great Eastern Energy Corporation Ltd. ("Great Eastern" or the "Company"), a Company involved in the exploration, development and production of coal bed methane ("CBM") in India through a licence over the 210 sq km block in the Raniganj Coalfields, West Bengal, is pleased to announce that it is seeking shareholders' approval to conduct an initial public offering ("IPO") in India in order to raise further capital and to achieve a listing for its shares on the Indian stock exchanges alongside its existing listing on the AIM market of the London Stock Exchange.
The Company has issued a notice to shareholders convening an Extraordinary General Meeting (the "EGM") to be held on 8th September, 2008 to seek shareholders' approval for a number of proposals linked to the Indian IPO.
Great Eastern already raised GBP 19m in December 2005 through an admission of Global Depositary Receipts ("GDRs") on the AIM market of the London Stock Exchange. Each GDR represents 5 equity shares of INR 1 each in the capital of the Company (the "Equity Shares"). At present, there are 76,222,347 GDRs in issue, representing 381,111,735 Equity Shares. The 381,111,735 Equity Shares represented by the GDRs traded on AIM amount to approximately 69.98 per cent of the Company's total issued equity capital of 544,619,449 Equity Shares. On the basis of the price of the GDRs, the Company has a notional market capitalization of GBP 296.80 million.
Reasons for the Indian IPO
The IPO is being conducted in order to raise further funds for the Company. It is anticipated these funds will be allocated towards the acceleration of the Company's next phase of drilling and well development, acquisition of further acreages in CBM and the repayment of debt. The allocation of such funds is yet to be finalised and will depend on the total amount raised, which in turn is dependent on the price determined through the book building process.
In addition, it is intended that listing the Company's shares on the various Indian Stock Exchanges will provide existing shareholders with additional liquidity.
Details of the Indian IPO
The approval of shareholders is being sought to offer up to 92,654,000 new and existing Equity Shares through an initial public offering (the "Issue"). It is intended to list the Equity Shares on the Bombay Stock Exchange Limited and National Stock Exchange of India Limited and such other recognized stock exchanges as may be determined by the Board from time to time.
The Issue will comprise (a) the offer of up to 46,327,000 new Equity Shares to be issued by the Company, representing approximately 7.84 per cent of the maximum enlarged equity share capital of the Company and (b) an offer for sale of up to 46,327,000 existing Equity Shares by certain shareholders of the Company (the "Offer for Sale"), in each case for cash at a price to be determined by a book building process conducted in accordance with the provisions of the Securities and Exchange Board of India (Disclosure and Investor Protection) Guidelines, 2000, including any amendments thereof (the "SEBI DIP Guidelines") and in consultation with the book running lead managers appointed for the Issue ("BRLMs"), on such terms and conditions, to such person or persons including organizations, companies and other entities as the Board may in its absolute discretion deem fit in accordance with the SEBI DIP Guidelines.
In addition, there will be an "over-allotment" facility in respect of a further amount of Equity Shares, not exceeding 15% of the total Issue, to a stabilizing agent pursuant to a green shoe option in accordance with SEBI DIP Guidelines.
ABN AMRO Securities (India) Private Limited ("ABN AMRO"), Enam Securities Private Limited ("Enam") and DSP Merrill Lynch Limited ("Merrill") are acting as the BRLMs to the Issue. BRLMs, as appointed and/or other BRLMs and/or Co-BRLMs, as may be appointed by the Board will advise on various issues relating to the Issue including the size of the Issue, the price band, and the marketing of the Issue on such terms and conditions as may be agreed upon between the Company and the relevant BRLMs.
Arden Partners plc ("Arden Partners"), the NOMAD and Broker to the Company in connection with the GDRs traded on the AIM market of the London Stock Exchange, is acting as co-ordinator and manager in connection with the GDR facility.
Copies of the notice to shareholders convening the EGM are available on the Company's website and which have been sent to all shareholders including the GDR Depository, Deutsche Bank Trust Company Americas. Holders of GDRs in the Company who have not received a copy of the notice to shareholders can obtain a copy from the Company's nominated advisor, Arden Partners. An outline summary of the shareholder resolutions to be considered at the EGM may be found in the attached Annex.
For further information:
Great Eastern Energy
YK Modi Chairman & CEO + 44 (0)20 7743 6363
Prashant Modi President & COO
Arden Partners
Richard Day +44 (0)20 7398 1632 Adrian Trimmings
Pelham Public Relations
Philip Dennis +44 (0)20 7743 6363
Hugh Barker
ANNEX
Outline Summary of Shareholder Resolutions to be considered at the EGM
The Directors of the Company have unanimously recommended that shareholders vote in respect to the matters which are to be proposed at the EGM. The matters to be proposed at the EGM include the following:
For full details of the shareholder resolutions to be considered at the EGM, please see the notice to shareholders convening the EGM which is available on the Company's website and which have been sent to all shareholders, including the GDR Depository, Deutsche Bank Trust Company Americas. Holders of GDRs in the Company who have not received a copy of the notice to shareholders can obtain a copy from the Company's nominated advisor, Arden Partners.