TPG India Investments to pick 49% stake in Shriram Retail Holdings for US$ 120 Million

Shriram City Union Finance Ltd (SCUFL) has announced that the Board of Directors of the Company at its meeting held on September 12, 2008, inter alia, has approved the execution by the Company of an agreement with its promoters and TPG India Investments I, Inc ("TPG"). Pursuant to the said agreement, it is proposed that TPG will invest upto $ 120 million (Rs 530 Crores) to acquire an equity stake of upto 49% in Shriram Retail Holdings Pvt Ltd, the holding company of the Company.

The transaction will necessitate a public announcement of an open offer for shares of the Company in compliance with the Takeover Regulations since TPG would indirectly acquire upto 26.7% of SCUFL pursuant to the investment. The investment is subject to approval of the FIPB and other regulatory agencies.

The Shriram City Union Finance stock closed the day at Rs.368, down by Rs.1.50 or 0.41%. The stock hit an intraday high of Rs.368 and low of Rs.368.

The total traded quantity was 73 at an average price of Rs 368 resulting in a turnover of Rs 0.73 Lakhs.

Source : Equity Bulls

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