*Welspun Gujarat Stahl Rohren Ltd* plans to acquire 75% stake in *MSK Projects (India) Ltd* for Rs 400cr in an all cash deal.
Rs 200 cr will be infused directly in the company through preferential allotment. These funds will be used for business growth. The remaining Rs 200cr will be picked up through combination of a mandatory open offer and by buying some promoter stake in MSK which is around 21.68%. The deal will be financed through Welspun's existing cash flows. Fresh allotment is being made at Rs 123 per share as per SEBI regulations; the promoter stake has been bought at Rs 130 per share. The transaction, which marks the company's foray into infrastructure, is expected to be completed in 90 days. Ernst & Young conducted the due diligence of MSK and Brescon was the sole advisor to the deal. Transaction Reference: BS<http://www.business-standard.com/india/storypage.php?autono=88878&tp=on> Transaction Note Welspun Gujarat Stahl Rohren engages in manufacturing and coating of high-grade submerged arc-welded pipes and electric resistance welded pipes. MSK projects, promoted by Ashok Madhavdas Khurana, is into construction of roads through public-private partnership model. It owns and operates several BOOT assets in road and water sector. In 2007, *Subhkam Ventures* invested Rs 34cr in MSK at Rs 84 per share. The fund owns around 24% in the company as on 31 December, 2009. -- Regards Hardik Shah -- You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en.
