Infrastructure India Plc (IIP), an India focused investment firm listed on London Stock Exchange, has proposed to acquire it’s investment advisory firm Bloomsbury Asset Management Advisors (BAMA). The deal is yet to get approval from IIP’s shareholders, who will meet at an EGM on March16 to decide on the issue.
The acquisition is to be done for a total amount of £2 million, with £1.15 million in cash and the rest through issue of shares. About 81.5% of the shareholders of BAMA have already agreed to the present deal. Kaupthing Bank is a shareholder both in IIP and BAMA.
IIP looks to invest in infrastructure projects in India, with a particular focus on the energy and transport sectors. The deal would make BAMA’s management Gary Neville, Nimar Sehmi, Tim
Cavanagh and Natalia Poupard employees of IIP. BAMA was the exclusive advisor to IIP under the previous arrangement and was entitled to get an advisory fee and a performance fee. This would no longer be required under the new agreement.
Infrastructure India has invested 75% of its £36.7 million corpus in two projects. One is Shree Maheswar Hydel Power Corporation, a 400-MW hydroelectric power project located in Madhya Pradesh. The investment amount is £13.5 million for 6.23% stake. The second investment is in Western MP Infrastructure & Toll Roads Private Limited, which has been awarded the contract to implement the Lebad-Jaora Project, a toll road in Central India with a 25-year concession. The investment here is £11.3 million for a 26% stake.