Varun Shipping to go for rights issue to expand fleet
Mumbai: Varun Shipping Company is floating a rights issue of Rs 36.26 crore to fund its $40-million fleet addition plan. The unsecured fully convertible debuntures with a 1:1 ratio (one FCD for every equity share) will be converted into equity shares at the end of 12 months. The company’s paid-up equity will be doubled to Rs 72.52 crore.

While $22 million will be raised through the rights issue, the remaining will be sourced from internal accruals and resources. The promoters and directors, who hold around 37 per cent stake and IFC (Washington) and ICICI, who hold 5 per cent each, have already committed themselves to subscribing to the rights issue.

Varun Shipping owns 12 vessels, most of which are chartered to international charterers. The company has three LPG carriers and three product tankers, two of which are on a long charter. The other vessels in the fleet include two chemical carriers, two bulk carriers and two OSVs. Both the OSVs are owned by a wholly owned subsidiary VSC International Pte based in Singapore, and are chartered to the parent company.
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Cabot makes open offer for 40 per cent in its Indian arm
Mumbai: Cabot Corporation, the US-based carbon black major and its group holding firm - Cabot UK Holdings, have decided to make an open offer for a 40 per cent stake in its local company - Cabot India. The offer would be made at Rs 100 per share, a premium of nearly 55 per cent over the current market price.

The aim is to consolidate holdings in Cabot India in which Cabot Corporation currently holds 60 per cent through a wholly owned subsidiary, Cabot International Capital Corporation. The open offer may also result in the delisting of Cabot India. However, the offer is subject to the both the firms’ obtaining the approval of the Foreign Investment Promotion Board, the Secretariat for Industrial Assistance and the Reserve Bank of India.

The Cabot India makes carbon black, a by-product of oil refining. Cabot UK Holdings is a group company registered in England and Wales. At present, Cabot International Capital Corporation holds 52,43,040 shares in the local firm, representing 60 per cent of the outstanding equity share capital of the company.
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Nicholas Piramal set to acquire 28 per cent in German Remedies
Mumbai: Nicholas Piramal group is close to acquiring 27.72 per cent equity stake in German Remedies Ltd. (GRL) at Rs 400-425 per share. As per the deal, believed to be close to being finalised, a Nicholas Piramal group company will buy stakes from Asta Medica and Heller group of Germany, the majority shareholders of German Remedies.

The two foreign companies, which have 13.5 per cent stake each, have recently decided to sell their stake in GRL. The Nicholas Piramal group is believed to have submitted its bid through Rhone Poulenc India Ltd. (RPIL), which the group acquired in December 2000.
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