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Bank Brussels Lambert gets FIPB nod to pick up Vysysa Bank stake

The Foreign Investment Promotion Board today permitted Satyam Infoway Limited to hike its proposed American Depository Receipts issue by around Rs 2.75 billion to Rs 5.16 billion.

Besides, Bank Brussels Lambert, part of the ING Group, and AES Corporation have been given the green signal to pick up equity in Vysya Bank and Central Electric Supply Company respectively, FIPB sources said here.

These were among the 25 proposals approved by the board today amounting to a total foreign direct investment inflow of Rs 7.50 billion.

Satyam has been allowed to issue an aditional 1.65 million shares at a premium of Rs 790 per share. It previously held an approval for issuing 4.8 million shares at a premium of Rs 490 per share. However, the timing of the ADR issue was not mentioned.

Bank Brussels Lambert, which is part of the ING group, would be hiking its stake in Vysya Bank from the present 9.99 per cent to 20 per cent by infusing Rs 330 million. The shares would be allotted to BBL on a preferential basis and at a premium of Rs 140 per share.

Meanwhile, AES Corporation will acquire 51 per cent holding in CESCO for Rs 420 million. The stake would be acquired by a joint venture company in which AES holds 95 per cent stake.

Jyoti structures holds the remaining five per cent equity in the company which has a paid up capital of Rs 500 million.

Papierfabrik Louisenthal GMBH of Germany has been allowed to set up a 50-50 joint venture in India for making bank note paper and other security papers. The company would be infusing Rs 700 million into the venture.

The Indian partner for the joint venture has not been identified as yet.

The FIPB also allowed KPMG India Limited to set up its third wholly-owned subsidiary in India for providing consultancy services.

The subsidiary would be set up with an investment of $ 1 million.

Kutch Container Terminal Private Limited, a company floated by South Asia Ports, has been given the nod to invest Rs 1.10 billion for setting up contanier terminals in Kutch Port.

Indocean Diamond Tools Limited of Mauritius has been allowed to set up a wholly-owned subsidiary, investing Rs 500 million, for making diamond and carbide tools.

The UK-based Cigarette Components Limited would set up a wholly-owned subsidiary in India for making tear tapes for cigarette packs. The company, to be set up with an investment of Rs 10 million, would also make tear tapes to be used for other packages.

Meanwhile, Acer Compuer International Limited has been allowed to initially test market the products that the company intends to sell in India. These include computer peripherals, mouse and other related items.

A Reckitt and Colman subsidiary -- Meddison Square Holding BV of the Netherlands -- has been allowed to include a few items in the hair care and toiletries segments in its already approved list of products. The company's request to include pharmaceuticals in the list was, however, rejected by the board.

VNU International is purchasing 6.25 per cent stake from the Advanis in ORG-MARG Research Limited. The buyback has been permitted with an open-ended buyback option for the Advanis.

Insilco Limited, a subsidiary of Degussa-Heuls AG, has been allowed to float a Rs 300 million rights issue to fund the acquisition of the Bombay-based silica plant of Metazinc India Limited.

The company has opted for the partly convertible debenture route to raise Rs 300 million, 60 per cent of which will be non-convertible, with zero per cent interest rate.

Besides, Degussa would infuse a maximum of around Rs 300 million to increase its holding in Insilco from the existing 68 per cent to around 75 per cent.

UNI

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