The Hindu : CVC to pick up stake in JISCO

Online edition of India's National Newspaper
Saturday, Jun 28, 2003

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CVC to pick up stake in JISCO

MUMBAI JUNE 27. CVC International, part of Citigroup, has evinced interest to pick up about 5 per cent stake in Jindal Iron and Steel Company Ltd (JISCO).

JISCO would consider a proposal to issue 12.25 lakh shares to CVC International on a preferential basis at a board meeting scheduled on July 4, at a price determined as per SEBI norms, the Chairman and Managing Director, Sajjan Jindal, told shareholders at the annual general meeting here today.

These shares would be issued to Citicorp Banking Corporation, an investment vehicle of CVC International. The balance shares would be picked by Citigroup entity from the open market, Mr. Jindal said.

According to proposal for investment agreement, CVC International has sought certain minority protection rights through this preferential allotment of shares representing 2.78 per cent of the equity capital of the company. The rights would get triggered off on CVC International holding 4.8 per cent or more stake in the company.

This agreement is intended to terminate when the Citigroup entity's shareholding decreases below 4.8 per cent or by the fifth anniversary of the investment whichever is earlier, according to the investment proposal. — PTI

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