Perth-based biodiesel producer Mission Biofuels Ltd, which acquired a 20 per cent stake in its Indian subsidiary on Monday, has increased its holding in the company to 97.6 per cent, after the minority partner chose not to participate in a rights issue.
The full text of a company announcement is pasted below
On Monday 12 November 2007 Mission Biofuels Limited (ASX: MBT) announced that it had, subject to the approvals of the Foreign Investment Promotion Board and the Reserve Bank of India, agreed to acquire the 20% interest in Mission Biofuels India Pvt. Ltd (MBIPL) held by Indian Agribusiness Systems Pvt. Ltd (AW).
We are pleased to announce that our shareholding in MBIPL will now increase to 97.66% following a Rights Issue of shares undertaken by MBIPL to fund the expansion of its Indian feedstock operations.
The existing minority shareholders in MBIPL, Indian Agribusiness Systems Pvt Ltd elected not to participate in the Rights Issue (which closed yesterday 14 November 2007) and Skyzen Capital Advisors Pvt Ltd elected to subscribe to a small portion of its entitlement. Consequently, their shareholdings have accordingly been diluted from 30% to approximately 2.35%.
Upon completion of the acquisition of the AW stake, Mission's stake in MBIPL will further increase to 99.2%.
The company believes this is an excellent outcome and will impact Mission's earnings for the financial period 2008 positively.
