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| Srei consortium bags 57% DPSC stake |
| Press Trust of India / Kolkata Nov 20, 2009, 19:54 IST |
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India Power Corp (IPCL), a consortium promoted by Srei Infrastructure Finance and Bhaskar Silicon, has emerged as the higest bidder to acquire 57 per cent stake in Dishergarh Power Supply Corp (DPSC).
IPCL had bid a price of Rs 710 per share outsmarting the second highest bidder Descon, a 100 per cent subsidiary of DPSC, that had quoted Rs 703 per share.
Andrew Yule Chairman and Managing Director Kallol Datta said Rs 172 crore would be realised from the stake sale. DPSC is a Andrew Yule group company.
It would be an all-cash deal, he added.
The two other companies in the race to acquire majority stake in DPSC were RPG group company CESC and Patton International.
While CESC exited in the ninth round of bidding after quoting Rs 625 per share, Patton International was disqualified as it did not furnish a bank guarantee.
Andrew Yule along with the financial institutions LIC and GIC had put 57 per cent of DPSC's stake on the block as part of the company's revival process.
Of the 57 per cent, 15 per cent share belongs to Andrew Yule while the rest 42 per cent is held by the institutions.
Datta said Yule would receive a consideration of Rs 42 crore by virtue of holding of 15 per cent, and added that IPCL would now have to make an offer for 20 per cent.
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