Last checked at 25 Nov 2011 07:02
25 November 2011
KSK Power Ventur plc("KSK" or "the Company")
Completion of Tender Offer for shares of Indian Subsidiary
Further to the announcement dated 17th May 2011 and 5th October 2011, KSK Power Ventur plc (KSK.L), the power project company listed on the London Stock Exchange, with interests in multiple power plants and businesses across India, is pleased to announce that it has received the certificate confirming the completion of its tender offer at a price of Rupees 125 per share to acquire up to an additional 20 per cent of the shares in KSK Energy Ventures Limited ("KSKEV"), its Indian subsidiary listed on the National Stock Exchange of India Limited ("NSE") and the Bombay Stock Exchange Limited ("BSE").
A total of 74,526,091 shares in KSKEV have been acquired, mostly by the Indian subsidiary, under the tender offer and in total KSK Group now owns 279,232,677 shares in KSKEV, representing 74.94 per cent of the issued share capital of KSKEV, through the following companies
KSK Energy Limited, Mauritius 191,222,031 (51.32%)
KSK Power Holdings Limited, Mauritius 8,665,639 ( 2.33%)
KSK Energy Company Private Limited, India 79,345,007 (21.29%)
The funding for the acquisition has been through a combination of a small amount of internal cash balances and debt; with all such financing sourced at the acquiring Indian subsidiary level, KSK Energy Company Private Limited, from four Indian institutions. The financing has been secured with security over the assets of the borrower company and acquired shares under the tender offer. KSKEV will continue to be treated as a subsidiary for accounting purposes by KSK.
KSK will be announcing its un-audited financial results for the half year to 30th September 2011 on 29th November 2011
Commenting on the development, Mr. T. L. Sankar, Non-executive Chairman of KSK said:
"As already stated earlier, the Company's efforts to complete the tender offer to acquire an additional 20 per cent shareholding in KSKEV, in the current global circumstances, validates and reinforces the belief the KSK management has in the strong fundamentals and exciting business opportunities being pursued by KSKEV. We expect that this increased investment in KSKEV will improve the overall financial position of KSK in the longer term. We are thankful for the support of various shareholders, banks and institutions whose support has been vital to achieve the completion."
For further information, please contact:
KSK Power Ventur plc Mr. S. Kishore, Executive Director Mr. K. A. Sastry, Executive Director
| +91 40 2355 9922 |
Arden Partners plc Richard Day / Adrian Trimmings
| +44 (0)20 7614 5900 |