Date:09/08/2008 URL: http://www.thehindu.com/2008/08/09/stories/2008080960622000.htm

Business

Andrew Yule to shed stake in DPSC

Special Correspondent

LIC, United India also to unload equity

Plans to ramp up generating capacity
Keen to divest stake in two other firms

KOLKATA: Andrew Yule Company Ltd. (AYCL), along with the Life Insurance Corporation and the United India Insurance Company, is planning to divest its holding in DPSC (formerly Dishergarh Power Supply Company), a Andrew Yule group company, to a single strategic investor. While Andrew Yule holds 15 per cent stake, the two insurance companies together hold 42 per cent in DPSC. This makes the total equity on offer at 57. 17 per cent.

Listed on the National Stock Exchange, DPSC is engaged in generation, transmission and distribution of electricity in the Asansol-Ranigunj belt in West Bengal. It has an existing capacity of about 42 MW and is planning to ramp it up. Besides its power segment assets, DPSC owns substantial land assets. The company was founded in 1919. The public holds the remaining portion of the shares.

Hiving off DPSC along with at least three other group companies is part of Andrew Yule’s restructuring and revival policy.

“We are crafting a turnaround and are already making net profits,” a board-level official told The Hindu.

AYCL, which has 30 manufacturing units and a diverse product range, has a 97.5 per cent government holding with a small holding by the public.

The other two companies in which Andrew Yule is keen to shed its holdings are: Tide Water Oil which makes lubricants, and the joint venture Phoenix Yule, in which Andrew Yule holds a 26 pre cent stake with Phoenix of Germany holding 74 per cent. Deloitte & Touche Consulting is advising Andrew Yule on this deal.