BPL sells minority stake to Deutsche Bank
29 September 2008
Bangalore: BPL has announced that it is selling a minority five per cent stake to Deutsche Bank.
BPL's board approved the proposal for the sale of 24.26 lakh equity shares or convertible securities to Deutsche Bank, which has been actively involved in restructuring the company.
The board also approved a proposal for a qualified institutional placement (QIP) of securities, authorising the chairman and managing director Ajit Nambiar to take a decision on the size and timing of the placement.
A company statement said that funds raised through offloading the equity would be used for ''long-term working capital requirements'' of the healthcare management services business of the company, and for ''other general corporate purposes.''
Pricing of the stake that will be acquired by the multinational bank would be worked out as per SEBI guidelines. BPL's healthcare management solutions division has been around for over 30 years, making a range of products including advanced diagnostic equipment.
BPL had a large chunk of India's colour television market in the 1990s, though its fortunes waned somewhat on account of a financial crunch and a prolonged corporate debt restructuring exercise.
It had later ended an alliance with Sanyo, under which it would manufacture colour televisions, reviewing the business plan with the new market dynamics in mind.
BPL is also said to be reviving its 600-MW Ramagundam thermal power project. The company's stock closed at Rs30.95, dropping around 10 per cent from the previous day's closing price.