Chennai-based Bombay Stock Exchange-listed Ram Kaashyap Investment (RKIL), which is into investment and securities trading, besides newly entered media and entertainment business, is diversifying into oil and natural gas environmental services in a big way. Accordingly, the company will be signing a memorandum of understanding (MoU) with Tanian Consolidated at Tortola, in British Virgin Islands (BVI), located in the Caribbean to the east of Puerto Rico, to buy 100% stake in Gemmia Worldwide for $ 150 million.
?The consideration will be paid either in the form of GDR or by cash plus equities,? sources in the know told FE.
Gemmia Worldwide, engaged in oil sludge treatment and recycling, open reservoir cleaning services and technologies, has assets and activities across Russia, US, India, China and south east Asia. The board of directors of the company has formed a panel of experts in the field of oil and gas environment services to oversee the company’s foray into a non-core segment, oil and gas. The members include Vladimir Bernstein, who handled large projects of large American countries, P N Devarajan, former group president of Reliance Industries and J Jayaraman, former CMD of Cochin Refineries. The company, which has plans to hive off the media business division into separate subsidiary once the new business venture stablilises, is also mulling a name change for the company to reflect the new initiatives.
The company, in a bid to make inroads into oil and gas environmental services in the domestic market, is evaluating a tie up with Ariva Technologies, who has got experience in the field worldover. The board has also decided to seek shareholders nod to raise $150 million through ADR/ GDR or FCCBs.