Warburg, Pincus to take stake in Moser Baer

CHENNAI, JUNE 18. E.M. WARBURG, Pincus & Co. (Warburg), one of the oldest and largest private equity funds in the world has decided to take a 14.8 per cent stake in Moser Baer India (MBIL) for $51 million (Rs. 227 crores). The deal has been done at a price of Rs. 337 per share involving a placement of 5.75 million shares.

The board of directors of Moser has also approved the offer and issue of further equity capital worth $21.7 million to Warburg through an issue of 1.25 million additional equity shares and 1.6 million warrants (convertible into equal number of shares) on a preferential basis at a price of Rs. 340 for each such additional equity share and warrant.

International Finance Corporation had already committed to invest a further $40 million ($15 million in equity and $25 million in debt) in addition to $10.1 million (at cost) invested in the previous years.

The funds are required to meet the expenditure on capacity expansion of the company's recordable CD and DVD project.

By 2001 the company will have a capacity of 760 million units annually making it one of the leading manufacturers in the world with an expected worldwide market share of 8-10 per cent.

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Section  : Business
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