GVK consolidates infratsructure assets

Kolkata, Jan 28 (UNI) GVK, a leading infrastructure developer, today announced consolidation of its infrastructure assets under one company making it an integrated infrastructure player.

A company release said here that as a part of the consolidation, all the infrastructure assets in Power, Airport, Road and Mining will now come under one umbrella of GVK Power and Infrastructure Limited(GVKPIL).

The Board of Directors of GVKPIL and the Board of Directors of Bowstring Projects and investments Private Limited (Bowstring) and the Board of Directors Green Garden Hoerticulture Private Limited (Green Garden) in separate meetings held today approved a proposal for amalgamation of Bowstring and Green Garden with GVKIL.

Bowstring and Green Garden, were both closely held unlisted companies, hold equality stakes in various power and infrastructure projects of GVK.

"The consolidation will align all GVK infrastructure companies under one roof thereby enabling GVK to position itself as an integrated infrastructure compny to leverage emerging opportunities in this sector. It will also provide better realisation of value for our investors," GVK chairman G V Krishna Reddy said.

The scheme of amalgamation, approved by the respective Boards envisages a share exchange ratio of 133 equity shares of the face value of Rs10 each of GVKPIL, for every four equity shares of the face value of Rs 10 each of Green Garden.

The proposed Scheme of Arrangement (Scheme) envisages a share exchange ratio of 3 (Three equity shares of the face value of Rs10 each of GVKPIL, for every 40 (Forty) equity shares of the face value of Rs 10 each of GVKIL.

The scheme would be subject to various approvals, including those of stock exchanges, shareholders of respective companies, any regulatory authorities. The scheme of amalgamation would have to be approved by the High Court of Delhi and Scheme of Arrangement would have to be approved by the High Court in Delhi and High Court in Andhra Pradesh. The appointed date of merger is proposed to be April one, 2006.

GVK Power&Infrastructure Limited is a listed public company belonging to GVK, engaged in the business of owning, operating, and maintaining power plants by itself and through its subsidiary associate companies.

GVK has presence in hospitality, manufacturing, power, roads, airports and urban infrastructure. GVK has invested over Rs 5,000 crore in its various business ansd has on hand projects in the pipeline of over Rs 12,000 crore.

UNI