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Stake Sale
Blackstone Group to pick stake in Allcargo Global
Posted On : 2008-02-20 00:59:37( TIMEZONE : IST )
The Board of Directors of Allcargo Global Logistics Ltd (AGL) at its meeting held on February 19, 2008, inter alia, has approved raising of funds to the extent of Rs 2,424 million by way of issuance of following securities / instruments to 'Blackstone Group and its Affiliates ('Blackstone'), on Preferential basis.
The company is planning to issue of 1,000 equity shares of Rs 10/- each fully paid up of the Company at a price of Rs 934/- per share.
To issue 1,081,081 6% Fully and Compulsorily Convertible Debentures (FCCD) of Rs 10/- each convertible into 1,081,081 equity shares of Rs 10 each of the Company on completion of 18 months from the date of issuance, at a price of Rs 934/- per FCCD.
To issue 1,513,514 Warrants of Rs 10/- each convertible into 1,513,514 equity shares of Rs 10/- each of the Company at the option of the Investors within a period of 18 months from the date of issuance, at a price ranging between Rs 934 to Rs 1,284 per Warrant. On subscription of Warrant, investors will pay Rs 194/- per Warrant.
Blackstone also intends to purchase additional shares of the Company from the open market from time to time, but intends to maintain its ownership below 14.99%.
The above proposed preferential issue will be subject to regulatory approvals and consents as governed under Section 81(1A) of the Companies Act 1956 and as per SEBI guidelines on Preferential issue of Equity Shares, Fully and Compulsorily Convertible Debentures and Warrants. A meeting of the equity shareholders of the Company will be convened on March 19, 2008 for obtaining their approval to aforesaid proposal of the Company.
Of the total investment deal aggregating to Rs 2424 million, Blackstone and its affiliates will infuse Rs 1,304.25 mn on subscription of the Equity Shares, FCCDs and Warrants. The FCCDs and Warrants are convertible into 1 equity share each before the expiry of 18 months from date of subscription. While the conversion price of the FCCD is at issue price, the conversion of the Warrants are linked to the Company's performance (consolidated EBIDTA of CY 2008).
"It has been really fulfilling to have our business strength endorsed by none other than a fund of the stature of Blackstone. This I believe is true value creation for the stakeholders of the Company; my fellow shareholders will all be able to reap the benefits of this association in the years to come. I am confident that with this investment by Blackstone and their involvement in AGL, we will be able to further explore the immense opportunities in the logistics space in India and globally" - Mr. Shashi Kiran Shetty, Chairman and Managing Director of AGL.
The Investment Banking arm of Kotak Mahindra Capital Company Ltd, CitiGroup and Collins Stewart Inga Pvt Ltd acted as joint advisors to the above transaction.
