KLG Systel - Outcome of Board Meeting
KLG Systel Ltd has informed BSE that the Board of Directors of the Company at its meeting held on April 16, 2008, has resolved the following:
1. Transfer of the Power Systems Solution (PSS) division of the Company to KLG Power Ltd, a subsidiary of the Company in which the Company holds 99% of the share capital, as a going concern by way of a slump sale, subject to the shareholders approval and other approvals under applicable laws and contract with third parties, with effect from April 01, 2008.
2. Make an investment in KLG Power Ltd up to an amount of Rs 125 crore.
3. Obtain the consent of the shareholders of KLG Systel Ltd through postal ballot for following :
a. Transfer of the Power System Solutions division of the Company to KLG Power Ltd.
b. Increase the borrowing limits of the Company.
c. Create further mortgage / hypothecate on the assets of the Company.
d. Invest in the shares of KLG Power Ltd.
4. Give the Executive Chairman and Managing Director power to sign the agreement between TPG Growth India I Ltd, KLG Power Ltd and the Company, under which TPG will invest an amount of upto Rs 200 Crores through unsecured Compulsorily Convertible Debentures carrying interest rate of 9.5% in KLG Power Ltd for upto 20% holding on diluted basis on the date of conversion. TPG Growth India I Ltd, the mid-cap buyout and growth investment platform of TPG is one of the leading global private investment firms.
Tags: KLG Systel