The Hindu : Business : Mittal, U.S. firm to buy in Indiabulls’ arm

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Saturday, Feb 16, 2008
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Mittal, U.S. firm to buy in Indiabulls’ arm

The combined investment will be Rs. 1,580 crore

MUMBAI: NRI industrialist L. N. Mittal and U.S.-based fund house Farallon Capital Management will pick up 37 per cent stake in Indiabulls Real Estate subsidiary for a combined investment of Rs. 1,580 crore.

An agreement to this effect has been entered into between Indiabulls Real Estate, FIM Ltd — a foreign venture capital investor managed by Farallon Capital Management LLC — and LNM India Internet Ventures Ltd., an investment arm of LNM group.

Both investors — Mr. Mittal and Farallon — have agreed to invest around Rs. 1,580 crore by subscribing to 37.5 per cent equity capital of Sophia Power Company at Rs. 66.67 each, Indiabulls Real Estate said in a filing with the BSE.

The unlisted Sophia Power Company is a 100 per cent subsidiary of Indiabulls Real Estate.

According to the agreement, FIM would invest Rs. 987.50 crore for a 23.4 per cent stake, while LNM India Internet Ventures will inject Rs. 592.50 crore for 14.1 per cent shareholding in Sophia Power Company.

Indiabulls Real Estate has invested Rs. 395 crore and would hold 62.5 per cent of the post-issue equity share capital of Sophia Power Company.

Besides, Indiabulls has invested Rs. 197.50 crore for subscription to equity shares of its unlisted wholly-owned subsidiary Indiabulls Power Services. The merged entity would be called Sophia Power Company. — PTI

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