CG Power and Industrial Solutions on Tuesday said its shareholders have approved allotting 1.38 crore shares for Rs 101.20 crore to Standard Chartered Bank (Singapore) Limited (SCB) on a preferential basis to settle liability.
Earlier last month, the board of directors of the company had approved the proposal for the issuance and allotment of 1,38,45,000 shares of the company of face value of Rs 2 each on a preferential basis at a price of Rs 73.10, including a premium of Rs 71.10 per equity share, aggregating to Rs 1,01,20,69,500 for consideration other than cash.
The proposal was listed on the agenda of the EGM scheduled on June 7, 2021.
”All resolutions proposed in the Notice convening the Extra-Ordinary General Meeting (EGM on June 7) of the Company were approved and passed by the Members of the Company with requisite majority,” a BSE filing by the company stated. After this translation, the shareholding of the promoter and promoter group will come down to 52.68 per cent from 53.22 per cent (as of May 7, 2021). Post issue, the SCB shareholding would be 1.02 per cent in the company against nil at present. The allotment of shares is for settlement of liability of the company under the guarantee issued by it pursuant to the terms under the Guarantee Settlement Agreement to Standard Chartered Bank (Singapore) Ltd (SCB), subject to the approval of the shareholders, the filing said.
The CG Power had entered into an agreement in January 2018 under which it had guaranteed the payment/repayment obligations of CG International Holding Singapore Pte Ltd, a wholly-owned subsidiary of the company, under the credit facilities aggregating to 44 million euros availed by CG Singapore from SCB.
The outstanding obligations of the company towards SCB under the guarantee agreement and other guarantee documents were agreed to be settled pursuant to an agreement dated November 13, 2020. As per the guarantee agreement, the company was required to pay 3,664,682 euros to SCB; and issue and allot 1,38,45,000 equity shares of the company to SCB, a qualified buyer.
During the EGM, the shareholders also approved that appointment of Natarajan Srinivasan as a Managing Director for a period of two years from 26th November 2020 up to 25th November 2022 and approval for terms of remuneration, including remuneration to be paid in case of loss or inadequacy of profits in any financial year during his tenure. The members also approved waiver of recovery and ratification of managerial remuneration paid to Natarajan Srinivasan, Managing Director of the Company for the financial year 2020-21 in case of loss or inadequacy of profits in the said financial year.
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