Infrastructure India plc raises $102 million

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Infrastructure India plc raises $102 million

Infrastructure India plc (IIP), the infrastructure fund investing directly into assets in India, has closed the proposed placing of new ordinary shares raising approximately US$102 million before expenses.

The placing price represents a premium of approximately 24% to the mid-market closing price of an ordinary share of 14.50 pence on 14 July 2014 (being the latest practicable date prior to the announcement of the placing).

In accordance with the terms of the subscription agreement between IIP and Barnet Holdings, Ltd. announced by IIP on 20 August 2014, Barnet, an affiliate of the company's majority indirect shareholder, GGIC, Ltd. (formerly Guggenheim Global Infrastructure Company Limited), has subscribed for all of the placing shares.

As a result, GGIC and Barnet's stakes in IIP will now represent a combined 75.4% of the issued share capital of the company, up from 51.17%.

According to the City Code on Takeovers and Mergers, Barnet's subscription for the placing shares does not give rise to an obligation to make a general offer for the company.

Application has been made to the London Stock Exchange for the placing shares, which rank pari passu with the company's existing issued ordinary shares. Dealings are expected to commence at 8.00 a.m. on 28 August 2014. 

IIP is the only London listed investment company with exposure to transport and energy assets in India. There are currently five assets in the portfolio, two of which are wholly owned:

  • Vikram Logistic and Maritime Services Limited (VLMS) (99.9 %)
  • Shree Maheshwar Hydel Power Corporation Limited (17.7 %)
  • Western MP Infrastructure and Toll Roads Private Limited (26 %)
  • Indian Energy Limited (IEL) (100 %)
  • India Hydropower Development Company, LLC (50 %)

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