Baring Private Equity Partners Asia has picked up 8.86 per cent stake in leading edible oil manufacturer KS Oils Ltd for Rs 90 crore ($22 milion). Baring Private Equity Asia III Mauritius has picked up 21.48 million shares at Rs 41.90 apiece (of face value Re 1).
A board meeting of the publicly listed KS Oils on August 22 has cleared the deal, the company informed the stock exchanges. The company has also made a preferential allotment of 23,866,350 warrants (to be priced at Rs 41.9 at conversion) to promoters of the company. KS Oils is promoted by the Garg family of Morena, Madhya Pradesh.
KS Oils had last year raised Rs 90 crore from private equity fund, Citigroup Venture Capital International, which owns about 14.82 per cent stake in the company. CVCI is also believed to be investing again in KS Oils a similar amount.
Early this month, KS Oils had said it would raise $60 million from overseas investors. It plans to raise $25 million through a preferential issue of global depository receipts (GDRs) in one or more tranches to foreign funds such as CVCIGP II Client Rosehill Ltd and CVCIGP II Employee Rosehill Ltd. It also plans to issue Foreign Currency Convertible Bonds (FCCBs) or GDRs of up to $35 million in one or more tranches. The $22 million fund raising from Baring is part of this fund raising.
PricewaterhouseCoopers (PwC) is acting as sole financial adviser to KS Oils in all its fund raising efforts through private placement of equity, GDRs and FCCBs.
No comments:
Post a Comment