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Mytrah Energy chairman makes bid to take group private
Ravi Kailas, chairman of Indian wind power firm Myrtah Energy (MEL), is making a push to take the AIM-quoted group private with a cash bid of 45p per share.
Kailas' vehicle Raksha Energy, which already owns 57.9% of Myrtah's issued share capital, tabled a proposal to purchase the outstanding shares at a 64% premium to the group's closing price on Tuesday - a move that has been backed by Mytrah's independent directors.
Mytrah shares have slumped of late, despite a drastically increased level of expansion activity that has resulted in its generating capacity reaching nearly 1.7Gw.
Russell Walls, Myrtah's senior independent director, claimed the group's share price had been hindered by negative sentiment around the Indian economy, particularly the power and infrastructure sector, and the company's capital and ownership structure.
The offer values the entire issued, and to be issued, share capital of Mytrah at a fully diluted basis of approximately £78.9m.
Raksha's representative, Kathryn Tully, said, "We continue to believe in MEL's potential and believe this offer provides an attractive and certain value for the current MEL independent shareholders."
As of 1430 BST, shares had surged 59.27% to 43.80p.