KSK Power Raises $99 Mn Through Fresh Issue
KSK Power Venture Plc (KSK), a power project firm listed on the London Stock Exchange, has raised £62.5 Mn ($99.4 Mn) through issue of 12,254,902 fresh shares at 510 pence a share to institutional investors.
The equity issue represents 8% equity dilution of the expanded capital base valuing the company at £775 Mn ($1.225 Bn).
The amount raised is proposed to be used for augmenting capital expenditure in various areas including consolidation of its stake in the Indian subsidiary KSK Energy Ventures Limited besides pursuit of new identified mineral development opportunities and fuel supplies and to invest in the area of renewable energy in India, such as wind power and solar.
Transaction Reference: StockMarketWire
KSK Energy Ventures is setting up a $3.6 Bn power project, KSK Mahanadi in Chahattisgarhthat to generate 3,600 MW of energy.
Consolidation of holding in Indian subsidiary KSK Energy Ventures Limited is part of the deal to buyback shares from Lehman Brothers. Early this year, KSK had entered into an agreement with Lehman Bros group that gave it the right of first refusal to buy back part of the stake in KSK Energy Ventures owned by the US firm that had filed for bankruptcy two years ago.
KSK owns around 52% in the Indian listed firm KSK Energy Ventures Limited, through a wholly-owned arm and had signed a deal that gave it the option to raise its holding by purchasing 3.67% from Lehman Bros entity LB Mauritius III Ltd for $52.7 million (Rs 247.5 Cr).
Last year KSK Energy Ventures raised Rs.515 Cr through QIP issue at Rs. 194/share.
Lehman Bros firms holds 18.9% (70.7 million shares) in KSK Energy Ventures of which 12.23% stake (13.7 Mn shares) is locked up until October 2011 through a share lock up agreement where KSK already has the first right of refusal. KSK and the other investor now has the right to buy out the balance 6.5% stake by June 2011.
Recently, there were news that Malaysian billionaire T Ananda Krishnan’s Usaha Tegas Sdn is planning to invest upto $250 Mn in KSK Energy Ventures Ltd and some of its projects.
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KVEZAR VIEW
| Date | Transaction | Type | Buyer | Size ($mn) |
|---|---|---|---|---|
| 30/09/10 | KSK Power Venture Plc - Fund Raising | IPO / Offerings | 99.40 |
| Date | Type | Buyer | Target | Size ($mn) | State |
|---|---|---|---|---|---|
| 02/05/12 | Private Equity | Looking For | Husk Power Systems Private Limited | - | Announced |
| 28/03/12 | M&A | STEAG GmBH | Hinduja National Power Corp. Limited | - | Announced |
| 22/03/12 | M&A | Korea Electric PowerCorp | Pioneer Gas Power Limited | 98.37 | Announced |
| 24/02/12 | M&A | Tecpro Systems Limited | Eversun Energy Private Limited | - | Completed |
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