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Stake Sale
Alok Industries converts FCCBs
Posted On : 2008-01-21 04:39:50( TIMEZONE : IST )
Alok Industries Ltd has announced that with reference to the earlier announcement dated January 15, 2008 informing about the exercise of Option of Mandatory Conversion of 2/3rd (i.e.; two Mandatory Conversion Options of 1/3rd each) of the total outstanding 753 FCCBs of USD 50000 each aggregating to USD 37.65 million forming part of 1% Unsecured Foreign Currency Convertible Bonds (FCCB) issue of USD 70 million of the Company launched in May and June 2005.
The said 2/3rd Mandatory Conversion Options were exercised on account of (i) the Market Price of the Shares being above 140% of the Conversion Price for 10 consecutive days from the December 26, 2007 till the January 08, 2008 thus triggering the mandatory conversion of 1/3rd of the outstanding FCCBs; and (ii) the Market Price of the shares was being above 150% of the Conversion Price for 10 consecutive days from the December 27, 2007 till the January 09, 2008 thus triggering the mandatory conversion of a further 1/3rd of the balance FCCBs. The Company had sent the necessary notices to the Bondholders through Euroclear and the Luxembourg Stock Exchange Website.
The Company have now been advised by the Deutsche Bank Luxembourg S.A., Registrar, Paying and Conversion Agent and Listing Agent, that pursuant to the Condition 5.2.3 of the Offering Circular, the Company can exercise only one Mandatory Conversion Option in any 30 calendar day period. The Company have accordingly notified its Bondholders to ignore the 150% Notice (2nd Mandatory Conversion Option of 1/3rd bonds) and its provisions to be treated as null and void. The Company have already sent necessary notification in this regard to the Bondholders through Euroclear and the Luxembourg Stock Exchange Website.
Further the Company has informed that, the 140% Notice (1st Mandatory Conversion Option of 1/3rd bonds) exercised by the Company on January 14, 2008 shall continue to remain valid and operative. Accordingly 251 FCCBs of the face value of USD 50000 each are liable to be converted leaving a balance of 502 FCCBs outstanding.
