INDIA: Bajaj Hindusthan divests from power company
Published: 07/11/2018, 11:13:50 PM
Bajaj Hindusthan Sugar plans to sell its entire 17.51% stake in the group firm Lalitpur Power Generation Company Ltd (LPGCL), estimated to be worth INR11 billion (US$112 million), according to the Press Trust of India.
The company had invested INR7.70 billion in LPGCL and now needs to divest non-core assets as per the debt restructuring scheme approved by the lenders.
Bajaj Hindusthan Sugar has convened an extraordinary general meeting on 4 August to seek shareholders' approval for the sale of its share in LPGCL to another group firm Bajaj Energy Ltd.
In a notice to shareholders, Bajaj Hindusthan said that the company's investment in LPGCL has been identified as "non-core to the sugar and allied business activities".
The company holds 15,439,900 shares of INR10 each, constituting 17.51% of the paid-up capital of LPGCL.
"The cost of investment by the company for 17.51% equity shares in LPGCL is INR7.70 billion," the company said, adding that these shares are presently pledged against the loan facilities availed by the company and LPGCL.