CG Power Seeks Shareholders Nod For Preferential Allotment Of Shares To SCB

CG Power and Industrial Solutions on Friday said it will seek shareholder approval to allot 1.38 crore shares for Rs 101.20 crore to Standard Chartered Bank on a preferential basis to settle liability in an extra-ordinary general meeting on June 7.

Earlier this week on Tuesday, the board of directors of the company had approved the proposal for the issuance and allotment of 1,38,45,000 shares of the company of face value of Rs 2 each on a preferential basis at a price of Rs 73.10, including a premium of Rs 71.10 per equity share, aggregating to Rs 1,01,20,69,500 for consideration other than cash.

The proposal is listed on the agenda of the EGM scheduled on June 7, 2021, a BSE filing stated.

After this translation, the shareholding of the promoter and promoter group will come down to 52.68 per cent from 53.22 per cent (as of May 7, 2021). Post issue, the SCB shareholding would be 1.02 per cent in the company against nil at present.

The allotment of shares is for settlement of liability of the company under the guarantee issued by it pursuant to the terms under the Guarantee Settlement Agreement to Standard Chartered Bank (Singapore) Ltd (SCB), subject to the approval of the shareholders, the filing said.

The CG Power had entered into an agreement in January 2018 under which it had guaranteed the payment/repayment obligations of CG International Holding Singapore Pte Ltd, a wholly-owned subsidiary of the company, under the credit facilities aggregating to 44 million euros availed by CG Singapore from SCB.

The outstanding obligations of the company towards SCB under the guarantee agreement and other guarantee documents were agreed to be settled pursuant to an agreement dated November 13, 2020.

As per the guarantee agreement, the company was required to pay 3,664,682 euros to SCB; and issue and allot 1,38,45,000 equity shares of the company to SCB, a qualified institutional buyer.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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