Nagarjuna Construction approves Blackstone`s investment
Nagarjuna Construction approves Blackstone`s investment Nagarjuna Construction (NCCL) at its meeting held on September 24 approved the decision of Blackstone Group`s Rs 6.15 billion investment in the company, reports Business Line. Blackstone is a global alternative asset manager and provider of financial advisory services. It is listed on the New York Stock Exchange, with total assets under management of approximately USD 91.8 billion as of June 30, 2007. NCCL will issue 20 million equity shares of Rs 2 each, at a premium of Rs 200.50 and 911 million warrants of Rs 225 a warrant. Each warrant is convertible into one equity share of Rs 2 each at a premium of Rs 223. >Nagarjuna Construction plans to use the money for additional investments in public-private infrastructure projects and to expand its capital base, which would help it bid for larger projects and strengthen its position in the market. NCCL has been involved in road, water, buildings, electrical works and irrigation projects and has ventured into power, oil and gas, and metals.
The proposal to enhance the overall strength of the board from 15 to 18 directors and consequential amendment to the articles of association of the company was also approved.
The issue will be made to Blackstone GPV Capital Partners Mauritius V-A Ltd, Blackstone GPV Capit al Partners (Mauritius) V-H Ltd, and Blackstone FP Capital Partners (Mauritius) V FII Ltd. The company would use the proceeds of preferential offer primarily to fund build-operate-transfer projects.
Shares of the company closed up Rs 7.3, or 3.01%, at Rs 249.45. The total volume of shares traded at the BSE was 164,747.( Monday ).
