CVC International Keen To Acquire Stake In Jisco

Mumbai, June 27: | Updated: Jun 28 2003, 05:30am hrs
CVC International, a unit of Citibank Global Investments, has evinced interest in acquiring a 2.78 per cent stake in Jindal Iron and Steel Company Ltd (Jisco).

The board of Jisco is meeting on July 4, 2003, to consider the issue of 12,25,000 equity shares of the face value of Rs 10 each on a preferential basis to CVC International at a price to be determined in accordance with the rules of the Securities and Exchange Board of India (Sebi).

According to a company notice to The Stock Exchange, Mumbai (BSE), the preferential allotment has given CVC International certain minority protection rights. The rights will get triggered on CVC International holding 4.8 per cent or more.

There was a detailed agreement between the parties which will terminate when the shareholding of CVC International decreases below 4.8 per cent or at the fifth anniversary of the investment, whichever is earlier, the company said.

Industry analysts said the move is expected to improve Jiscos ratings, especially since 80 per cent of its produce is exported, as affiliation with an international name like CVC International will help in increasing the export orders.