Welspun arm to acquire MSK Projects
18 Mar 2010
Welspun Infratech, a group company of Welspun-Gujarat Stahl Rohren Ltd, will acquire a controlling stake in MSK Projects India Ltd for a total of Rs211.30 crore.
In a press release issued today, Wellspun said the promoters of MSK Projects are selling their stake in the company to Welspun Infratech Ltd.
The board of directors of MSK Projects (India) Ltd, at its meeting today, has, subject to necessary approvals and applicable provisions of law decided to issue up to 1,71,78,888 equity shares of Rs10 each of the company on a preferential basis to Welspun Infratech Ltd.
The Rs10 stock is being sold at Rs123 each - a premium of Rs113, and in compliance with SEBI Regulations, 2009 and the Companies Act 1956, the release said.
Further, the promoters have informed the company that they propose to transfer, subject to satisfaction of certain conditions precedent, 47,52,345 equity shares at Rs130 per share out of their total shareholding of 49,48,495 equity shares of MSK Projects to Welspun Infratech Ltd.
With the acquisition of these equity shares, Welspun Infratech Ltd will become the promoters of the MSK Projects with a controlling stake in the company.
