ADAG buys NEPC unit for Rs 260 cr
Anil Ambani’s ADAG has made a strategic entry into the wind energy business through Southern Wind Farms (SWFL) in which ADAG owns a little over 25% equity. Wind energy is estimated to have a huge potential in India.
SWFL is said to have acquired the Chennai-based NEPC India’s wind energy division for a consideration of about Rs 260 crore.SWFL, which is promoted by a group of investors, high net worth individuals and FIIs comprising Reliance ADAG, Enam, Morgan Stanley and Quantum M, will be now rechristened Global Wind Power and listed on the Indian bourses in the next few months, sources privy to the deal told ET.
In October, 2005, NEPC had informed the stock exchanges that it was selling its wind energy division to Southern Wind Farms, a special purpose vehicle (SPV) set up by a group of investors.
Further, all shareholders in NEPC were to be allotted 12.5 shares of Southern Wind Farms for every 100 shares held in the former. However, neither the identity of the investors nor the consideration was revealed that time.
After protracted negotiations over the past several months, the deal was finally inked early on Saturday, the sources said. Chennai-based Systematix Capital Services, promoted by CP Khandelwal, initiated and closed the deal.
As part of the deal, 87.5 lakh equity shares of Rs 10 each of SWFL have been issued to NEPC Shareholders Trust, set up by SWFL for the benefit of NEPC shareholders. These shares will be distributed to them after completing process of the name change, they said.
The promoters (Khemkas) of NEPC, who held about 22% stake, is now expected to get around 2.5-3% equity in GWPL, when shares of the new company are allotted to them as per the agreed formula.
The NEPC Board, which met here on Saturday, took on record the successful conclusion of the sale of its wind energy business to SWFL. In a communication to BSE and NSE, it has stated that “no further amount or consideration” is payable by SWFL and/or its shareholders.
“ADAG at present owns about 25% in SWFL. Given its ambitious plans for wind energy, its stake is likely to go up significantly,” the sources said.
SWFL is said to have acquired the Chennai-based NEPC India’s wind energy division for a consideration of about Rs 260 crore.SWFL, which is promoted by a group of investors, high net worth individuals and FIIs comprising Reliance ADAG, Enam, Morgan Stanley and Quantum M, will be now rechristened Global Wind Power and listed on the Indian bourses in the next few months, sources privy to the deal told ET.
In October, 2005, NEPC had informed the stock exchanges that it was selling its wind energy division to Southern Wind Farms, a special purpose vehicle (SPV) set up by a group of investors.
Further, all shareholders in NEPC were to be allotted 12.5 shares of Southern Wind Farms for every 100 shares held in the former. However, neither the identity of the investors nor the consideration was revealed that time.
After protracted negotiations over the past several months, the deal was finally inked early on Saturday, the sources said. Chennai-based Systematix Capital Services, promoted by CP Khandelwal, initiated and closed the deal.
As part of the deal, 87.5 lakh equity shares of Rs 10 each of SWFL have been issued to NEPC Shareholders Trust, set up by SWFL for the benefit of NEPC shareholders. These shares will be distributed to them after completing process of the name change, they said.
The promoters (Khemkas) of NEPC, who held about 22% stake, is now expected to get around 2.5-3% equity in GWPL, when shares of the new company are allotted to them as per the agreed formula.
The NEPC Board, which met here on Saturday, took on record the successful conclusion of the sale of its wind energy business to SWFL. In a communication to BSE and NSE, it has stated that “no further amount or consideration” is payable by SWFL and/or its shareholders.
“ADAG at present owns about 25% in SWFL. Given its ambitious plans for wind energy, its stake is likely to go up significantly,” the sources said.
posted by SY at 4:01 PM
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