*SKIL Infrastructure Ltd* will raise upto $300 Mn from PEs to to repay the
short term loans taken to buyout Punj Lloyd's stake in Pipavav Shipyard.

*Punj Lloyd* has exited Pipavav Shipyard by selling its 19.43% stake to
co-promoter SKIL Infrastructure for Rs Rs 656 Cr. The shares were sold at Rs
50.75 each. JM Financial was advising SKL Infra on the transaction.

Transaction Reference:
ET<http://economictimes.indiatimes.com/markets/stocks/stocks-in-news/SKIL-Infra-plans-share-sale-to-PE-funds-to-raise-300-mn/articleshow/5736693.cms>

 Transaction Note

SKIL Infrastructure - formerly known as Sea King Infrastructure Ltd. - was
founded by *Nikhil Gandhi* in 1990. It is engaged in development of ports,
shipyards, railway lines, expressways and urban infrastructure, including
SEZs.

SKIL had earlier raised $50 Mn from Ashoka Investment Holdings Ltd.,
Mauritius (Ashoka) and Ambadevi Mauritius Holding Ltd. (Ambadevi), both AIG
Funds by selling 4% stake.

SKIL Infrastructure is expected to make an open offer for 20% stake at Rs
61.5 per share from May 21 to June 3 to comply with the norms set by SEBI.
These two transactions will raise SKIL's stake in Pipavav to 59.73% from
20.13% currently.

SKIL has pledged its entire 20.13% stake in Pipavav with *IL&FS Trust* as
collateral for funds to buy the stake.

Pipavav Shipyard was formed in 2007 by SKIL Infrastructure Ltd.Pipavav
Shipyard was intially established to dismantle ships. It has two large wet
basins to dismantle ships in Gujarat.

Punj Lloyd became the co-promoter of Pipavav by acquiring a 22.29% stake at
Rs 27 per share for Rs 350 Cr. Its stake in Pipavav dropped to 19.6%, after
the yard came out with a public offering in Sept'09. Pipavav raised Rs 500
Cr from the IPO.

Pipavav Shipyard has raised PE funding from a number of PE firms including
New York PE, Standard Chatered PE, Indus Capital, Citadel, Battery Ventures,
Calpers and Capital International, since its inception in 2007.

The reason for Punj Lloyd's exit from Pipavav is unclear, however according
to MINT, Punj Lloyd is looking to raise cash to shore up its balance sheet.

In a seperate deal, Capital International Inc. bought 2.8% stake in Pipavav
on Friday through an open market deal. It paid Rs 64 per share for the
stake.


-- 
Regards

Hardik Shah

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