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Mumbai, Aug 7 The Murugappa Group-led Tube Investments of India will take up control of the fraud-hit CG Power, with nearly 51 per cent stake in the company at an investment of Rs 700 crore.On Friday, CG Power and Tube Investments entered into a securities subscription agreement (SSA) for the issuance and allotment of securities to the latter on a preferential basis, CG Power and Industrial Solutions Ltd said in a regulatory filing.The transaction would include investment of around Rs 550 crore for primary subscription to the equity shares, and investment of around Rs 150 crore for primary subscription to warrants.The warrants will be convertible into equivalent number of equity shares at the option of Tube Investments within 18 months from the allotment.Out of the total investment amount for the warrants, 25 per cent will be paid upfront at the time of subscription of the warrants.CG Power is undergoing financial stress and its lenders have initiated the process for resolution of its stress under the Stressed Asset Directions.The acquisition would be completed before 120 days from the date of the Securities Subscription Agreement, Tube Investments said its regulatory filing."Approximately 50.62 per cent of the issued and subscribed share capital of the target company from the equity shares. After the conversion of the Warrants into equity shares, the shareholding of TII will be approximately 56.61 per cent of the issued and subscribed share capital of the target company," it said.The deal, however, is subjected to Tube Investments being declared the winner of the Swiss challenge process to be undertaken by the lenders of the CG Power by August 28.Further, the lenders would also have to accept the one-time settlement and restructuring of funded facilities and guaranteed debt in accordance with the terms of the offer made by the prospective investor to CG Power and its lenders.( With inputs from IANS )

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Cg power and tube investments, Latest News

Business :Tube Investments to take control of CG Power for Rs 700 cr

Mumbai, Aug 7 The Murugappa Group-led Tube Investments of India will take up control of the fraud-hit CG ... ...