The Hindu Business Line : LG Electronics to buy IL&FS stake in LG Soft India

Initially, LG plans to acquire a 14 per cent stake in LG Soft while the balance 11 per cent will remain with IL&FS. LG has an option to buy out this portion at a future date.

According to earlier reports, IL&FS' investment in the company was an indirect investment by the American Insurance Group (AIG). AIG set up an information technology sector fund that was managed by IL&FS, and the money transfer happened via IL&FS during 2000 and 2001, sources said.

According to sources, the transaction is being carried out at par. As of now, the joint venture outfit has a paid-up capital of Rs 11,20,42,700 of which around 75 per cent or Rs 8,40,32,000 is held by LG Electronics.

IL&FS Trust Company has 25 per cent holding in the company amounting to Rs 2,80,10,680. LG is to acquire 15,42,800 equity shares of the company of Rs 10 each at par, after which, its holding will go up to 89 per cent. The proposal was cleared by the Government recently.

More Stories on : Mergers & Acquisitions | Software | Consumer Electronics

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
AP Paper Mills signs loan agreement with IFC

Capacity constraint delays Tata Motors' Marina launch

BHEL unit bags Rs 80-cr Omani order

Kinetic to supply auto parts to other cos

Tatas to expand power systems division

ICAI clarifies on norms for consolidated financial statements

Nagarjuna Fert to consider issue of preference shares

A will in the present with baggage from the past

TCS to sell stake in BPO venture to HDFC

LG Electronics to buy IL&FS stake in LG Soft India

Eagle group to invest Rs 100 cr in new diary making facility

BOC India plans 190-tpd gas plant in Hyderabad

UDV all set to exit joint venture with UB

Ponni Sugars trying new sources of raw material

Kerosene, LPG sale burden — BPCL, IBP may slip into red in Q1