Accel Frontline Ltd completes preferential allotment to CAC Corporation, Japan

The Board of Directors of Accel Frontline Ltd at its meeting held on January 18, 2014, have taken on record the sale of 75,00,000 Equity shares (amounting to 25.20% of the post issue subscribed share capital of the Company) by the promoters of the company namely Accel Limited, Accel Systems Group Inc, USA, and Mr. N. R. Panicker (Transferors) to M/s. CAC Corporation, Japan (Transferee & Acquirer) by way of an off market sale as part of the shareholders agreement dated December 09, 2013, wherein the acquirer is planning to acquire 51% stake in the Company by way of secondary purchase from the promoters (25.20%) as above and direct investment by way of preferential allotment (18.48%).

The preferential allotment to M/s. CAC Corporation, Japan was made on January 10, 2014 and was informed to the stock exchanges vide the letter dated January 10, 2014.

This sale has been effected electronically and has resulted in M/s. CAC Corporation, Japan's shareholding increasing to 43.68% (post issue subscribed share capital) in the Company. Consequent to this the Board of Directors of the Company have classified M/s. CAC Corporation, Japan as Promoter of the Company along with the present promoters.

Shares of Accel Frontline Ltd was last trading in BSE at Rs.43.25, down by Rs.0.15 or 0.35%. The stock hit an intraday high of Rs.43.40 and intraday low of Rs.43.25.

The total traded quantity was 2000 shares as compared to 2 week average of 1859 shares.

Source : Equity Bulls

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