HENKEL SPIC TO ISSUE PREFERENCE SHARES TO PARTNER
Article Abstract:
Henkel Spic India Ltd has obtained approval from its shareholders to issue Rs28 crore worth of non-cumulative redeemable preference shares to its German partner, Henkel KGaA at par. These shares are convertible at the discretion of the board. Henkel KGaA had given the company a self- liquidating loan of $5 million in foreign currency. Henkel Spic has issued these preference shares to convert the loan with interest accrued, into a share capital advance. Consequently, the company's capital will go up to Rs200 crore from the existing Rs150 crore of which Rs172 crore is share capital and the rest preference capital. In January 1998, approval was sought from shareholders for the company to float a 1:1 rights issue. This issue was to fund buying out the consumer products division of Shaw Wallace & Co (SWC) and SWC's stake in Calcutta Chemicals Ltd and Detergents India Ltd. The acquisition is in its final stages. Henkel Spic recorded net sales of Rs56.39 crore in the first half of 1998-99 as against Rs39.14 crore in the first half of 1997-98. The net loss was Rs3.85 crore. The financial year 1997-98 was extended till September 30, 1998. (nr)
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
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SISCOL SEEKS NOD TO ISSUE NON-VOTING RIGHTS SHARES
Article Abstract:
Southern Iron and Steel Company Ltd (Siscol) has sought approval from its shareholders to float non-voting rights shares. Siscol is a joint venture between Lakshmi Machine Works Ltd and Tamilnadu Industrial Development Corporation Ltd (Tidco). Siscol plans to offer redeemable cumulative preference shares (RCPS) worth about Rs54.85 crore of Rs10 each to its promoters and Tidco at an interest rate of 15 percent. The proceeds of RCPS will be utilised to part finance its steel project. The cost of the project has been increased from Rs450 crore to Rs688 crore. The project's excess amount of Rs238 crore will be funded through rights issue, preference shares and term loans. The new steel plant will produce mild steel and steel billets. (gs)
Comment:
Seeks approval from its shareholders to float non-voting rights shares
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
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