Strategic Relationship

15 Nov 2007 07:01

KSK Power Ventur PLC15 November 2007 KSK Power Ventur plc ("KSK" or "the Company") New arrangements with General Electric Company ("GE") and Board changes KSK Power Ventur plc (AIM: KSK.L), the power project development company withinterests in multiple power plants across India, today announces that it hasentered into a strategic relationship with GE (NYSE: GE), a diversified businesswith extensive global energy sector expertise and headquartered at Fairfield,Connecticut, USA. GE proposes to participate in the debt and equity of theCompany and its subsidiaries (the 'KSK Group'). As a first step, GE haspurchased the indirect interest of Mr. Hari Kiran Vadlamani ('Kiran') one of thepromoter Directors of KSK, who has decided to resign from the KSK Group. Fulldetails of the acquisition of this interest are set out below. Additionally, GEhas provided term sheets for debt valued at approximately US$120 million tocertain KSK Group companies. Kiran has predominantly been involved in the asset management side of the KSKGroup, including the "Small is Beautiful" fund which has invested in variousthird party Indian power projects. Kiran has decided to leave KSK and explorenew pastures. The board of KSK is being strengthened by the appointment of a GE seniorexecutive with significant global experience in the energy space as anadditional Non-Executive Director. It is anticipated such appointment will befinalised shortly and full details will be announced at that time. The Companyalso anticipates making another announcement in due course on steps to furtherstrengthen the main board. The board of KSK anticipates that this association with GE will bringsignificant value and opportunity for the Company and its shareholders. GE is astrong strategic partner, which has both extensive experience and understandingof the energy space as well as being endowed with deep financial resources tosupport the Group's major initiatives. This new arrangement with GE will build on and complement KSK's existing strongassociation and investment joint venture with Lehman, which continues to look atnew opportunities. K&S Consulting Group Private Limited ('K&S Consulting') held the entire issuedshare capital of Sayi Power Energy Limited ('Sayi'). In turn, Sayi holds 100million ordinary shares in KSK (representing approximately 77.6 per cent of theissued share capital of KSK). GE Energy Financial Services, a business unit of GE, has acquired Kiran's entireinterest in the KSK Group through a 25.77 per cent shareholding in Sayi. Kiranceases to have any interest in the KSK Group and has resigned as Director fromthe constituents of the KSK Group with immediate effect. The remaining 74.23 percent shareholding in Sayi will continue to be held by K&S Consulting on behalfof the remaining two promoter Directors, Kishore and Sastry. Sayi continues tohold 100 million ordinary shares in KSK. Commenting on these new initiatives, Padma Bhushan T L Sankar, Chairman of KSKsaid: "Kiran has chosen a new path after many long years of association with KSK. Allof us at KSK thank him for his role in the formative and growth periods of KSK.We wish him well in his new ventures. As for GE, we are pleased now to be working closely with such a well-respectedentity and will see them participating at various levels of our business. Webelieve it will strengthen our resource and operational areas". For further information, please contact KSK Power Ventur plc +91-40-23559922S. Kishore, Executive DirectorK.A. Sastry, Executive Director Arden Partners plc +44 (0)20 7398 1632Richard Day/Adrian Trimmings See our website on: www.ksk.co.in End: 15 November 2007 This information is provided by RNS The company news service from the London Stock Exchange