Financial Daily from THE HINDU group of publications
Wednesday, Jun 12, 2002
CIAL board to discuss pvt placement, rights
KOCHI, June 11
THE board of directors of Cochin International Airport Ltd (CIAL) is scheduled to meet in Thiruvananthapuram on June 13 to discuss pressing issues such as subscription of the long-pending rights issue and private placement to expand the company's equity base.
Already, UTI Bank, which has been assigned the task of finding suitable institutional investors interested in taking equity in CIAL through private placement, has identified two financial institutions, Mr Babu C. Rajeev, Managing Director, CIAL, told Business Line.
The bank's proposal would be discussed at the board meeting.
Besides, the rights issue had been pending for long and the company is thinking of closing the subscription by June 30.
Mr Rajeev also said that some of the directors had already expressed their interest to subscribe fully, apart from making some additional investment.
The board would discuss this issue and complete the rights issue and private placement before the month-end.
If the enhancement of the capital were completed early, it would help the company to make tangible savings on interest, he added.
According to him, some banks had also expressed their willingness to lend at low rates; negotiations are in the final stages.
CIAL wants to liquidate its high-cost loans as soon as possible, as it is eating into its profits. Therefore, the board would be taking a decision on these important issues.
Mr Rajeev said that it was impossible for any public sector company which is already in the red to invest in the airport company, while some others making profits might do so if they are given controlling shares.
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