The buyout offer from Chinese company Jiangsu Longzhe gets approved by the third-party agency, allowing Diamond Power to issue its shares worth 51% of company’s equity.
August 26, 2016
The electrical equipment maker Diamond Power Infrastructure received an investment proposal of USD 125 million from Jiangsu Longzhe Technology and Trade Development Co. Ltd. In an attempt to have a fair and transparent process of investor induction, EY was mandated by Diamond Power Infrastructure’s lenders to evaluate alternatives and finalize best options. After EY presented their evaluation on responses received by investors and financers, the proposal was approved.
On receiving an approval from its bankers Diamond Power will be able to issue shares aggregating to at least 51 percent of the company’s equity to Jiangsu Longzhe. This Chinese firm has interests in sectors incorporating education, entertainment, geo-synthetics, and infrastructure. The lenders of Diamond Power Infrastructure had finally invoked its powers under the strategic debt restructuring (SDR) norms to convert part of the company’s debt to majority equity.
