 |
January 18, 2008 |
|
|
|
 |
IFCI LTD: Sterlite Says Bid for 26% Stake Still Valid Sterlite Industries said the group had no plans to change the management of IFCI Ltd and that it's bid for a 26% stake om the company, the Press Trust of India reports. As previously reported by the Troubled Company Reporter-Asia Pacific, IFCI called off plans to sell 26% of the company after its board of directors rejected the financial proposal submitted by the consortium of Sterlite Industries and Morgan Stanley and Co, saying that the conditional offer is unacceptable. Management control reportedly was the reason behind the deal cancellation. Thomson Financial News, citing the Times, reported that the Sterlite-led consortium was seeking a guarantee from IFCI to ensure that any further dilution in IFCI stake be undertaken with their consent, which was unacceptable to IFCI. "We put the highest bid to turn it around,” PTI quotes Sterlite Industries Chairman Anil Agarwal in an interview with CNBC-TV18. “Our offer is still valid. The government can consider it anytime and talk to us." Mr. Agarwal insisted that the group had no plans to bring changes to the current IFCI management. “[W]e believe in the existing management,” he added. IFCI Limited -- http://www.ifciltd.com/ -- is established to cater the long-term finance needs of the industrial sector. The principal activities of IFCI include project finance, financial services, non-project specific assistance and corporate advisory services. Project finance involves providing credit and other facilities to green-field industrial projects (including infrastructure projects), as well as to brown-field projects. Financial services covers a range of activities wherein assistance is provided to existing concerns through various schemes for the acquisition of assets, as part of their expansion, diversification and modernization programs. Non-project specific assistance is provided in the form of corporate/short-term loans, working capital, bills discounting, etc to meet expenditure, which is not specifically related to any particular project. Its investment portfolio includes equity shares, preference shares, security receipts and government securities. * * * As reported in the Troubled Company Reporter-Asia Pacific on April 3, 2007, India's Credit Analysis & Research Ltd. retained a CARE D rating to IFCI's Long & Medium Term Debt aggregating INR91.36 crore. The amount represents the outstanding non- restructured amount under the Bonds series, which have been rated by CARE. Fitch Ratings, on June 29, 2006, affirmed IFCI's support rating at '4'. The outlook on the rating is stable. |
|
|
||
|
Today's Top Stories have been selected from the Troubled Company Reporter - Asia Pacific. To receive the Full TCR-AP please CLICK HERE.
