Radico Khaitan Ltd board approves issue of Preference (CCCPS) shares

Radico Khaitan Ltd has announced that the Shareholders at the Extra Ordinary General Meeting (EGM) of the Company held on August 10, 2006, have approved the proposal for the issue of 57,68,276, 6.25% Cumulative Compulsorily Convertible Preference Shares (CCCPSs) of Rs 100/- each at a premium of Rs 59.50 per share to Acacia Partners, LP, Acacia Institutional Partners LP and Acacia II Partners, LP, all affiliates of Ruane, Cunniff and Goldfarb Inc., a U.S.A. based Foreign Institutional Investor, for an aggregate amount of USD 20 million (equivalent to Rs 920 million app) on the terms and conditions as may be approved by the Board. The CCCPSs shall be convertible, at the option of the Investors, into equity shares of the Company within a period of 18 months from the date of issue / allotment at a price of Rs 159.50 per share and any CCCPSs that remain unconverted within the said 18 months period shall be compulsorily converted by the Company at the end of the said period at the same price.

Source : Equity Bulls

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