Torrent stake in AEC to hit 51%

AHMEDABAD, July 18: With the Gujarat Government passing a resolution last Wednesday to disinvest its entire 29 per cent share in Ahmedabad ...

AHMEDABAD, July 18: With the Gujarat Government passing a resolution last Wednesday to disinvest its entire 29 per cent share in Ahmedabad Electricity Company (AEC), Ahmedabad-based Torrent group has decided to acquire majority stake in the blue chip company.

The Rs 1,100 crore Torrent group, already holding 21.36% stake in the AEC, has decided to first go for buying 10 per cent of the share at Rs 117, as against a price Rs 55 quoted a week back and a high of Rs 88 quoted on Thursday.

The group will shortly go for issuing 2 per cent public offer as per SEBI guidelines, while acquiring the remaining 19 per cent share of the state government in due course. Even if Torrent has to incurr some losses while acquiring the state government shares at the agrred price, the source said, it is part of the corporate strategy to produce 2000 MW by 2000 AD.

It was almost after two years’ negotiations that the state government did agree at a price quoted by a corporate house, Reliance and Bombay also coming in-between, initially bidding higher price and later withdrawing.