Phoenix India Acquisition Corp acquires 65-per cent stake in Citius Power Limited
05 Mar 2008
New York: Phoenix India Acquisition Corp. has acquired a 65-per cent stake in Citius Power Limited, through a subscription to Citius's convertible preferred shares on an as converted, fully diluted basis.
Citius Power Limited, registerd in Mauritius, has entered into agreements to purchase up to 109 Megawatts (MW) of operating wind energy assets in India, through a 99.99-per cent owned subsidiary in India, Citius Power Limited (India).
Phoenix says Citius has a business plan to own and operate 3,000 MW of wind energy generating assets in India, subject to availability of financing.
Under the existing provisions of Phoenix's certificate of incorporation, it would have to obtain stockholder approval and complete the transaction, by 5 April 2008, which it says it may not be able to complete on time and therefore, the funds in the trust account from the proceeds of Phoenix's initial public offering will be distributed to its shareholders.
Phoenix intends to seek shareholders approval of an amendment to its certificate of incorporation to permit it to continue in existence following such distribution. Phoenix would thereafter attempt to raise capital as needed to complete the transaction through a private placement.
However, there is no assurance that its shareholders will approve such an amendment or that Phoenix will be able to raise the necessary funds.
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