Strategic Relationship
KSK Power Ventur PLC
15 November 2007
KSK Power Ventur plc
('KSK' or 'the Company')
New arrangements with General Electric Company ('GE')
and Board changes
KSK Power Ventur plc (AIM: KSK.L), the power project development company with
interests in multiple power plants across India, today announces that it has
entered into a strategic relationship with GE (NYSE: GE), a diversified business
with extensive global energy sector expertise and headquartered at Fairfield,
Connecticut, USA. GE proposes to participate in the debt and equity of the
Company and its subsidiaries (the 'KSK Group'). As a first step, GE has
purchased the indirect interest of Mr. Hari Kiran Vadlamani ('Kiran') one of the
promoter Directors of KSK, who has decided to resign from the KSK Group. Full
details of the acquisition of this interest are set out below. Additionally, GE
has provided term sheets for debt valued at approximately US$120 million to
certain KSK Group companies.
Kiran has predominantly been involved in the asset management side of the KSK
Group, including the 'Small is Beautiful' fund which has invested in various
third party Indian power projects. Kiran has decided to leave KSK and explore
new pastures.
The board of KSK is being strengthened by the appointment of a GE senior
executive with significant global experience in the energy space as an
additional Non-Executive Director. It is anticipated such appointment will be
finalised shortly and full details will be announced at that time. The Company
also anticipates making another announcement in due course on steps to further
strengthen the main board.
The board of KSK anticipates that this association with GE will bring
significant value and opportunity for the Company and its shareholders. GE is a
strong strategic partner, which has both extensive experience and understanding
of the energy space as well as being endowed with deep financial resources to
support the Group's major initiatives.
This new arrangement with GE will build on and complement KSK's existing strong
association and investment joint venture with Lehman, which continues to look at
new opportunities.
K&S Consulting Group Private Limited ('K&S Consulting') held the entire issued
share capital of Sayi Power Energy Limited ('Sayi'). In turn, Sayi holds 100
million ordinary shares in KSK (representing approximately 77.6 per cent of the
issued share capital of KSK).
GE Energy Financial Services, a business unit of GE, has acquired Kiran's entire
interest in the KSK Group through a 25.77 per cent shareholding in Sayi. Kiran
ceases to have any interest in the KSK Group and has resigned as Director from
the constituents of the KSK Group with immediate effect. The remaining 74.23 per
cent shareholding in Sayi will continue to be held by K&S Consulting on behalf
of the remaining two promoter Directors, Kishore and Sastry. Sayi continues to
hold 100 million ordinary shares in KSK.
Commenting on these new initiatives, Padma Bhushan T L Sankar, Chairman of KSK
said:
'Kiran has chosen a new path after many long years of association with KSK. All
of us at KSK thank him for his role in the formative and growth periods of KSK.
We wish him well in his new ventures.
As for GE, we are pleased now to be working closely with such a well-respected
entity and will see them participating at various levels of our business. We
believe it will strengthen our resource and operational areas'.
For further information, please contact
KSK Power Ventur plc +91-40-23559922
S. Kishore, Executive Director
K.A. Sastry, Executive Director
Arden Partners plc +44 (0)20 7398 1632
Richard Day/Adrian Trimmings
See our website on: www.ksk.co.in
End: 15 November 2007
This information is provided by RNS
The company news service from the London Stock Exchange
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