London-listed KSK Power Ventur plc today said it has made an open offer to acquire an additional 20% stake in one of its group companies, KSK Energy Ventures, for up to Rs 931.58 crore.
KSK Energy Limited, a subsidiary of the London-listed firm, along with its step-down subsidiaries, have made an open offer to acquire up to 74,526,091 (20%) fully paid-up equity shares of KSK Energy Ventures at Rs 125.00 per share, KSK Power Ventur said in a regulatory filing.
The proposed acquisition of the shares under the open offer with an outlay of $210 million is proposed to be financed with existing cash balances and debt raised by the respective acquiring companies, the filing added.
The open offer would commence on July 9, 2011, and would end on July 28.
Commenting on the development, KSK non-executive chairman T L Sankar said, "The acquisition, in addition to being extremely value accretive to the shareholders of the company, also provides the necessary strength to support future growth and the pursuit of additional businesses by KSK Energy Ventures."
The open offer is priced at a premium of 9.89 per cent to the May 16 closing price of KSK Energy Ventures shares at Rs 113.75 on the Bombay Stock Exchange.
The equity shares of KSK Energy Ventures are listed and traded on the National Stock Exchange and the Bombay Stock Exchange.
At present, KSK Power Ventur, through its subsidiaries, collectively holds an interest in 204,706,586 equity shares, constituting a 54.94 per cent stake, in KSK Energy Ventures.
Upon completion of the open offer and provided there is full acceptance, KSK Power Ventur's interest would consolidate further to 74.94 per cent of the voting share capital of KSK Energy Ventures.
