£62.5 million raised through

RNS Number : 4883T

KSK Power Ventur PLC

29 September 2010

 



29 September 2010

THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED HEREIN IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OF AMERICA, AUSTRALIA, CANADA OR JAPAN OR ANY JURISDICTION IN WHICH SUCH PUBLICATION OR DISTRIBUTION IS UNLAWFUL.

KSK Power Ventur plc
("KSK" or "the Company")

£62.5 million raised through placing of new shares

KSK Power Ventur plc (KSK.L), the power project company listed on the London Stock Exchange, with interests in multiple power plants and businesses across India, is pleased to announce that it has successfully raised £62.5 million through its broker, Arden Partners, placing new equity shares.

Equity placing

The Company has raised £62.5 million (before expenses) by way of a placing (the "Placing") by Arden Partners plc ("Arden Partners") of 12,254,902 new ordinary shares of 0.1p each in the capital of the Company (the "Placing Shares") with institutional investors at a price of 510 pence per share (the "Placing Price"). The Placing is being underwritten by Arden Partners. The Placing Price is at a discount of 4.2 per cent. to the closing middle market price of the ordinary shares of the Company as derived from the daily Official List of the London Stock Exchange on 28 September 2010, the latest date prior to the announcement.

The Placing is conditional on admission of the Placing Shares to trading on the Standard List of the Main Market of the London Stock Exchange ("Admission"). It is expected that Admission will occur, and dealings in the Placing Shares will begin, at 8:00 a.m. on 4 October 2010.

The Placing Shares will represent approximately 8 per cent. of the then enlarged share capital of KSK. The Placing Shares will, when issued, rank pari passu in all respects with the existing issued shares of KSK, including the right to receive any dividends and other distributions declared following Admission.

Following Admission, the total number of ordinary shares with voting rights in the Company will be 151,789,145 This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, their shareholding in the Company.

Further and subsequent to the announcement by the Company of 16 August 2010, Arden Partners have now additionally placed, on behalf of another shareholder of the Company, 3,221,250 of existing shares in the Company (representing 2.31 per cent of the current issued share capital) at the same Placing Price.

Use of proceeds

The Company proposes to use the Placing proceeds to pursue additional growth opportunities by augmenting capital expenditure on various areas, with the significant objective of further consolidation of its stake in the Indian subsidiary KSK Energy Ventures Limited, as well as the pursuit of new identified mineral development opportunities and fuel supplies and to invest in the area of renewable energy in India, such as wind power and solar. The Company intends to prioritise the deployment of funds thereto amongst the various growth initiatives under pursuit and also help balance the energy business portfolio of the Group.

Commenting on the development Mr. T.L. Sankar, Chairman, said:

"We have been delighted with the strong support from our existing and new shareholders for this placing. Together with the recently announced tie-up of the entire capital outlay of US$3.6bn for our 3.6 GW Mahanadi power plant at Chhattisgarh, we are well placed to pursue the exciting growth opportunities across various areas. With the intrinsic strength of the KSK business model and continuous support of shareholders, we will continue to pursue our next steps with renewed confidence."

For further information, please contact:

KSK Power Ventur plc Mr. S. Kishore, Executive Director Mr. K. A. Sastry, Executive Director	[phone]
Arden Partners plc                                                   Richard Day / Adrian Trimmings	[phone]
Financial Dynamics                                                       Jonathan Brill / Billy Clegg / Ed Westropp	[phone]

This announcement is for information purposes only and does not constitute an offer to sell or an invitation to subscribe for or a solicitation of an offer to buy or subscribe for any securities in any jurisdiction including in which such an offer or solicitation is unlawful and is not for distribution in or into, without limitation, the United Kingdom, the United Sates, Canada, Australia or Japan (the "Excluded Territories"), or to US persons (within the meaning of Regulations of the United States Securities Act 1933 (as amended) (the "Securities Act").

The Placing Shares have not been and will not be registered under the Securities Act or under the applicable securities laws of any state in the United States or any Excluded Territory and, unless an exemption under such act or laws is available may not be offered for sale or subscription or sold or subscribed directly or indirectly within the Excluded Territories or for the account or benefit of any national, resident or citizen of the Excluded Territories.  No public offering of securities will be made in the United States. The distribution of this announcement in other jurisdictions may be restricted by law and therefore persons into whose possession this announcement comes should inform themselves about and observe any such restrictions.  Any failure to comply with these restrictions may constitute a violation of the securities laws of such jurisdictions.

Arden Partners, which is authorised and regulated by the Financial Services Authority, is acting exclusively for KSK and for no one else in connection with the book building and the Placing and will not be responsible to anyone other than KSK for providing the protections afforded to clients of Arden nor for providing advice in relation to the Placing or the book building or any other matters referred to in this announcement.

The contents of this announcement are not to be construed as legal, financial or tax advice. If necessary, each recipient of this announcement should consult his, her or its own legal adviser, financial adviser or tax adviser for legal, financial or tax advice.

This announcement contains certain statements that are or may be "forward-looking statements". These statements typically contain words such as "intends", "expects", "anticipates", "estimates" and words of similar import. All the statements other than statements of historical facts included in this announcement, including, without limitation, those regarding KSK's financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating to KSK's products and services) are forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and therefore undue reliance should not be placed on such forward-looking statements. There are a number of factors that could cause the actual results, performance or achievements of KSK or those markets and economies to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding KSK's present and future business strategies and the environment in which KSK will operate in the future and such assumptions may or may not prove to be correct. Forward-looking statements speak only as at the date they are made. Neither KSK nor Arden nor any other person undertakes any obligation (other than, in the case of KSK, pursuant to the Listing Rules and the Disclosure and Transparency Rules) to update publicly any of the information contained in this announcement, including any forward-looking statements, in the light of new information, change in circumstances or future events.

 

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