Corporate Actions

Forth Ports Plc Scheme of Arrangement

Forth Ports Plc has been acquired (a recommended cash offer) by Otter Ports Limited and is subject to a scheme of arrangement on the 2nd June 2011.

Forth Ports (UK sedol 0347310) will be de-indexed from the FTSE250 following its sale to Otter Ports, a subsidiary of Arcus European Infrastructure Fund. The takeover saw Forth Ports being sold for £745 million.

The takover agreement valued Forth Ports shares at £16.30, which reflects a premium of 8.3% based on the closing price on 4th March 2011. The final dividend of 20p per share will still be paid out to entitled shareholders (record date 15th April 2011).

Forth Ports Company Registrar

For more information on this event contact Forth Port’s company registrar:

  • Equiniti Limited Aspect House,
  • Spencer Road,
  • Lancing,
  • West Sussex,
  • BN99 6DA.
  • Shareholder helpline: 0871 384 2149

The final trading price on the London Stock Exchange was £16.27.

 

Mahindra & Mahindra Scheme of Arrangement

Mahindra & Mahindra Ltd. is considering a Scheme of Arrangement between Mahindra & Mahindra Ltd. and Mahindra Automobile Distributor Private Limited which is a wholly owned subsidiary of Mahindra & Mahindra Ltd.

The terms of the scheme are not announced yet but it may involve a demerger of Mahindra Automobile Distributor Private Limited to allow it to trade separately on the Indian stock exchange.

In addition to the possible demerger of the automotive business there are also reports of an additional demerger of its Agri Inputs Business.

Mahindra & Mahindra Limited is an Indian multinational conglomerate with headquarters in Mumbai. It was originally a steel trading business during the post-war period then moved into the autmotive industry and produced Willys Jeeps, the military jeeps that would common during the second world war. It went on to produce a range of popular 4 wheel drive vehicles.

Since 2008 Mahindra has been developing is automotive industry further with new models such as the Scorpio and the Bolero. It has been working in partnership with Ford and has expanded its operations to Egpyt and Brazil.

Mahindra & Mahindra Operations

As well as the automotive industry, Mahindra & Mahindra also cover:

  • Farm Equipment
  • Banking & Finance with the Kotak Mahindra Bank
  • Information Technology – Tech Mahindra, Mahindra Satyam, Bristlecone
  • Club Mahindra Holidays
  • Mahindra Defence
  • Mahindra Aerospace
  • Infrastructure & Real Estate – development of Special Economic Zones (SEZ)
  • Agriculture Farm Component
  • Healthcare

Mahindra & Mahindra was the 19th largest company in India in 2010 with a turnover of Rs 319.57 billion.

Reliance MediaWorks Rights Issue

The Indian film company Reliance MediaWorks has announced plans for a rights issue to raise Rs.500 crore (around £67million).

The rights issue will mostly be used to raise cash to pay of debts which have built up over the last few years as a result of various projects including 550 new BIG Cinemas worldwide.

Reliance MediaWorks made an operating loss of around Rs.164 crore (£22 million) in the first quarter of 2011.

Terms of the Reliance MediaWorks rights issue have not been determined yet. More soon.

Update – Right Issue Approved

The board have approved the rights issue. They plan to raise £67 million through the sale of new shares to existing shareholders.

The full terms of the Reliance MediaWorks rights issue are still to be announced, however, it is expected that the new shares will represent a good discount to the current trading price of the shares.

 

Rajapalayam Mills Bonus Issue Announced

Rajapalayam Mills (Public, BOM:532503) has announced that it plans to process a 100% bonus issue (1 new share for every share held) to increase liquidity of its stock.

The bonus issue will be voted on at the next annual general meeting.

They have also announced that the dividend payment for this year will be Rs.15 per share, of which half will be a standard dividend and half a special dividend.

Over the last year Rajapalayam Mills has seen an increase in turnover from Rs.238 crore to Rs.305 crore and net profits increased by over 100%.

About Rajapalayam Mills

Rajapalayam Mills produces textiles, tissue culture and also generates electrical power from wind turbines. Rajapalayam Mills exports cotton to Japan, Korea, Thailand, Hong Kong, China, Egypt, Turkey, Italy, Mauritius, Sri Lanka, Bangladesh, Greece and Switzerland.

Vikash Metal & Power Rights Issue

Vikash Metal & Power have announced to that they plan to have a rights issue to raise funds for the development of a new plant.

The rights issue is still yet to be agreed. The next board meeting on the 30th May 2011 will discuss the options further.

Akkash Patni, executive director of Vikash Metals, told moneycontrol.com that they hoped to raise between “Rs100 crore to Rs125 crore”. A Crore is 10 million rupees, so they are hoping to raise 10,000,000,000 – 12,500,000,000 rupees, which is the equivalent of 134 – 162 million pounds. So a large amount of cash.

Vikash Metal & Power stock price has increased today by 4.56% on the back of this news.

Vikash Metal & Power Limited is a major Indian iron and steel manufacturer. They operate a power plant. Their main products are:

  • Sponge iron
  • MS billets
  • MS rounds
  • TMT bars
  • Ferro alloys
  • Pig iron
  • Power

Its steel and iron products are used in the construction industry for bridges, buildings, highways. They also export iron and steel. Vikash Patni is the Managing Director and Executive Director.

More on the rights issue soon.

 

 

Bank of India $1.7 Billion Rights Issue

The Bank of India’s board of directors have agreed that a rights issue to raise 77 billion rupees ($1.7 billion) should go ahead.

The Bank of India will release 180 million new shares by offering current shareholders the right to take up new shares. They are also arranging a Placement of shares by contacting investment banks and asset managers to agree to purchase shares.

Investors are confident that this is a good move as today the Bank of India’s share price rose by 1.5% on the Bombay Stock Exchange.

Source: Reuters.com

Ulster Bank Dutch Auction Tender Offer for Celtic Residential 9 Notes

Ulster Bank has announced a buy back plan by way of a Modified Dutch Auction Procedure. It is hoping to buy back EUR1.7 billion of its notes from bondholders.

Due to the market conditions at the moment Ulster Bank is able to buy back some of its notes below par value.

It can benefit bondholders by giving them the opportunity to take a cash payment early prior for the final redemption date of the bonds.

Ulster Bank has over 1.9 million customers and employs more than 6000 people. It has 146 branches in the Republic of Ireland and 90 branches in Northern Ireland.

The Dutch auction tender offer means that Ulster Bank will set a range at which bondholders can bid to have their bonds tendered at. If bondholders bid below the final “strike price” they will not have their bonds tendered. The Bank will not accept for purchase any Notes tendered at prices greater than the Purchase Price for the relevant Class.

The bonds which will be subject to the tender offer and the minimum purchase prices percentages are:

  • €1,067,500,000 Class A2 Mortgage Backed Floating Rate Notes due 2047 – XS0235753299 – 79%.
  • €70,000,000 Class B Mortgage Backed Floating Rate Notes due 2047 – XS0235753372 – 57%
  • €1,253,000,000 Class A2 Mortgage Backed Floating Rate Notes due 2048 – XS0262424012 – 77%
  • €89,500,000 Class B Mortgage Backed Floating Rate Notes due 2048 – XS0262424525 – 48%
  • €385,000,000 Class A2a Mortgage Backed Floating Rate Notes due 2048 – XS0275790516 – 99.5%
  • €1,388,800,000 Class A3a Mortgage Backed Floating Rate Notes due 2048 – XS0275790789 – 82%
  • £586,000,000 Class A3c Mortgage Backed Floating Rate Notes due 2048 – XS0275790862- 82%
  • €77,000,000 Class Ba Mortgage Backed Floating Rate Notes due 2048 – XS0275790946 – 57%
  • €147,400,000 Class Ca Mortgage Backed Floating Rate Notes due 2048 XS0275791084 – 50%
  • £17,500,000 Class Cc Mortgage Backed Floating Rate Notes due 2048 XS0275791167 – 50%
  • €487,500,000 Class A2 Mortgage Backed Floating Rate Notes due 2049 – 96%
  • €1,010,685,000 Class A3 Mortgage Backed Floating Rate Notes due 2049 XS0305171059 – 77%
  • €39,000,000 Class B Mortgage Backed Floating Rate Notes due 2049 XS0305171562 – 57%
  • €87,750,000 Class C Mortgage Backed Floating Rate Notes due 2049 XS0305172610 – 42%

In order to participate in, and be eligible to receive the relevant Purchase Price pursuant to the relevant Offer, Noteholders must validly tender their Notes by delivering, or arranging to have delivered on their behalf, a valid Tender Instruction (as more fully described in the Tender Offer Memorandum) that is received by the Tender Agent by 4.00 p.m. (London time) on 7 June 2011. Tender Instructions will be irrevocable except in the limited circumstances described in the Tender Offer Memorandum.

Key Dates of the Ulster Bank Dutch Auction

  • Commencement of the Offers – 24 May 2011
  • Expiration Deadline – 4.00 p.m. on 7 June 2011
  • Announcement of Offer Results – As soon as reasonably practicable after 12.00 noon on 8 June 2011
  • Settlement Date – 13 June 2011

All details can be amended by Ulster Bank at any time.

The Royal Bank of Scotland plc is acting as Dealer Manager for the Offers and Lucid Issuer Services Limited is acting as Tender Agent.

DEALER MANAGER:

  • The Royal Bank of Scotland plc
  • 135 Bishopsgate
  • London EC2M 3UR
  • United Kingdom
  • Tel: +44 20 7085 9178
  • Attn: Liability Management Group
  • Email: liabilitymanagement@rbs.com

TENDER AGENT

  • Lucid Issuer Services Limited
  • Leroy House
  • 436 Essex Road
  • London N1 3QP
  • United Kingdom
  • Telephone: +44 20 7704 0880
  • Attention: David Shilson / Yves Theis
  • Email: celtic@lucid-is.com

This announcement must be read in conjunction with the Tender Offer Memorandum, issued by Ulster Bank Ireland Limited.

Ulster Bank investors website: http://group.ulsterbank.com/investors

Premier Breweries Rights Issue To Raise N800 Million

Premier Breweries of Nigeria has announced plans to raise N800 million (about £3.14m) by way of a rights issue. The money is required to allow it to start operations again. It closed down in the 1990s due to mis-management and too much interference from government politicians.

The rights issue aims to sell an additional 867,680,940 ordinary shares to existing shareholders.

Terms of the rights issue:

  • 7 new shares for each share held
  • record date is 31st July 2010
  • Call price: N1

Current exchange rate is 1 Nigerian naira = 0.3936p (approx)

Keith Francis Gammage, the acting manager director, explained that they hope to start production by July and will be producing beer and malt drinks again. They are also in the process of considering other options.

Gammage also spoke of many other obstacles to development including the poor infrastructure in Nigeria meaning the transportation of products was very expensive and unreliable.

Sri Lanka’s Commercial Bank of Ceylon Rights Issue

Sri Lanka’s Commercial Bank of Ceylon is planning to raise 9.7 billion rupees (equiv. $88 dollars) by way of a rights issue. It says that the purpose of the rights issue is to raise funds for business expansion.

The rights issues will be followed by a stock split to lower the share price and increase the number of shares in circulation. It plans to release 50.9 million new ordinary voting shares.

Terms of the rights issue:

  • Rights entitlement: 1 new share for every 7 shares held
  • Call price: 181.65 rupees

The following Stock split will be at a 2 for 1 ratio to double the number of shares in circulation.

$1 is around 110 Sri Lanka Rupees (24/05/11)

Stock Information

Commercial Bank of Ceylon Ltd. (Public, COL:COMB)

Company website: www.combank.net

 

 

AKVA group ASA Rights Issue

AKVA group ASA (“AKVA”) is planning to release new shares to the stock market by means of a rights issue. AKVA has announced that it wishes to raise capital for investments in development of the company’s core products and core lines of business.

Terms of the Rights Issue

AKVA is releasing 8,611,434 new shares at a subscription price of NOK 11.00 per share. This is a fully underwritten rights issue, so any rights not taken up by shareholders will be purchased by the underwriters. Details subject to confirmation.

  • Ex-date: 25th May 2011
  • Record Date: 24th May 2011
  • Ratio: 0.5 sub-rights for each share held.
  • Call Price: NOK11.00
  • Subscription period: 03/06/11 to 23/06/11
  • Call date: 28th June 2011

After completion of the rights offering the share capital in AKVA will be NOK 25,834,303, divided on 25,834,303 shares, each having a par value of NOK 1.00.

AKVA Group Information

AKVA group develops technology for the global fish farming industry and is the only company in this market with global distribution.

Website: www.akvasmart.com