NEW DELHI, Jan 30: The Thapar group is negotiating a private placement of about 18 per cent stake in Andhra Pradesh Rayon with a "private equity fund".Ballarpur Industries Ltd joint managing director Gautam Thapar said here on Friday the private equity fund would pick up stake in Bilt Chemicals also.
"We are negotiating a packaged deal under which the equity fund will pick up stake in Andhra Pradesh Rayon and Bilt Chemicals." The negotiations are expected to be concluded early next week, Thapar added. Andhra Pradesh Rayon has an equity base of Rs 26 crore which will be expanded to Rs 33 crore after the private placement. BILT has about 50 per cent stake in the Andhra Pradesh Rayon. Thapar said, the BILT holding would be reduced to about 41.5 per cent after the equity expansion. The company was keen to place the share at a premium of Rs 30 per share.
Andhra Pradesh Rayon is also scouting for a joint venture partner for its packaging business, Thapar said. The company would confine itself to the processindustry, he added. As per the restructuring plan, Andhra Pradesh Rayon will buy out the assets of BILT's chemical division and hold it in a separate company -- Bilt Chemicals.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
