Disposal of interest

25 Mar 2008 09:17

KSK Power Ventur PLC25 March 2008 For immediate release 25 March 2008 KSK Power Ventur plc ("KSK" or "the Company") Disposal of interest in Coromandel Electric Company Limited and Director's further details. Following the announcement on 28 January 2008 and in pursuance of theShareholder Agreement dated 6 April 2005 with the India Cements Limited ("ICL"),ICL has exercised its right to purchase all the shares held by KSK and itsassociates in Coromandel Electric Company Limited ("CECL") for an aggregateconsideration of USD 1.64 million (based on accounts as of September 2007) andhas remitted USD 1.19 million as advance towards the same. On completion ofaudit as of the transfer date, the balance consideration (to be computed basedon the audited accounts as of the transfer date) will be paid by ICL. Theproceeds of sale would be utilized towards meeting the operational requirementsof the company. CECL's plant was set up in two phases, with Phase I (consisting of 2 gas enginesof 8.73 MW each) aggregating to 17.46 MW commencing commercial operations inNovember 2004 and Phase II (consisting of one gas engine of 8.73 MW) commencingoperations in January 2006. The entire power generated out of the aggregateinstalled capacity of the plant of 26.19 MW is off taken by ICL. The capital structure of CECL, prior to divestment, was as follows: Equity Capital USD 0.125 million (KSK held 71.86% of the equity capital) Redeemable PreferenceCapital USD 2.06 million (KSK held Nil)Redeemable ParticipatingPreference Capital USD 3.04 million (KSK held USD 1.25 million) As of 30 September 2007, CECL had gross assets of USD 22.49 million and on aturnover of USD 4.6 million, for the 6 month period ended 30 September 2007 itmade a Profit Before Tax and Extra Ordinary items of USD 0.74 million. As of 30September 2007, KSK (including the 71.86% stake in CECL) had gross assets of USD260.09 million and for the 6 months ended September 30,2007 had operatingrevenue of USD 13.47 million and net income before tax of USD 23.46 million(including investment income of USD 21.03 million). KSK would continue to focus on its other power generation assets as well asdevelop new power projects. (All currency conversions, wherever required are at 1 USD=INR 39.81) In continuation of the earlier announcement regarding the appointment of Mr.Scott Richard Bayman, aged 64 years, as a Non-Executive Director on the Board ofKSK, pursuant to Rule 17 of the AIM Rules it is notified that he is also aDirector on the Boards of Punj Lloyd Limited, Gurgaon, India, Crompton GreavesLimited, Mumbai, India and Jubilant Energy NV, Amsterdam, the Netherlands. Thereis no further disclosure under Schedule Two, paragraph (g) of the AIM Rules. For further information please contact: KSK Power Ventur plc +91 40 2355 9922S. Kishore, Executive DirectorK.A. Sastry, Executive Director Arden Partners plc +44 (0)20 7398 1632Richard Day / Adrian Trimmings Buchanan Communications +44 (0)20 7466 5000Mark Edwards / Ben Willey This information is provided by RNS The company news service from the London Stock Exchange