CAC CORP. TO PARTNER ACCEL FRONTLINE

CAC Corp. signs a definitive agreement to induct Accel Frontline as a strategic partner, while the troubled ABG Shipyard gets an Rs 11000 crore CDR proposal. IT bellwether Infosys signs a three year contract to set up a testing centre of excellence.

CAC CORPORATION TO ACQUIRE 51 PER CENT OWNERSHIP IN ACCEL FRONTLINE

CAC Corporation, Japan and the current promoters of Accel Frontline (AFL) have announced that they have signed definitive agreements to induct CAC as a strategic partner in Accel Frontline. The agreement suggests that CAC will acquire minimum 51 per cent equity shareholding in AFL through purchase of equity shares from the promoters, subscription of new equity shares of the company CDR PROPOSAL CLEARED and purchase of equity shares from public shareholders by the mandatory open offer for up to 26 per cent of the company’s fully-diluted equity capital at a price of `45 per equity share.

The formation of the joint venture partnership is expected to provide major opportunities to both partners. While CAC will gain an immediate platform in the fast growing Indian IT services market, AFL will be able to access CAC’s relationship in Japan to provide IT services with India as a service hub. Also, Accel Frontline will now be able to keenly bid for providing IT infrastructure services for the major industrial corridors being built in India by leading Japanese Companies.

Some Additioinal Details:

• AFL has allotted 55,00,000 Equity shares ( 18.48 per cent) to M/s CAC  Corporation, Japan on 10th January 2014
• Acquisition from promoters 75,00,000 Equity shares (25.20 per cent) on 18th January 2014
• Acquisition of 51,41,175 Equity Shares (i.e. 17.27 per cent) by way of open offer from public on 3rd march 2014.
• CAC Corporation now holds 1,81,41,175 Equity Shares, constituting 60.95 per cent of the Equity Share Capital of Accel Frontline 
• The total promoter holding is 2,64,93,951 Equity Shares (89.02 per cent) and the public shareholding is 32,67,922 Equity Shares (10.98 per cent) in the company.

The troubled ABG Shipyard has got a fresh lease of life with the 22-lender consortium clearing Rs 11000 crore Corporate Debt Restructuring (CDR) proposal, which includes a fresh working capital loan of `1800 crore. This is the second largest CDR package in the history of India’s banking sector. This is not the first instance where the Indian banks had restructured such a large CDR package. The largest CDR package was cleared in July, 2013 for the engineering and construction major Gammon India when its Rs13500-crore loan was rescheduled for a 10-year tenor at lower interest rate.

BAGGING LONG TERM CONTRACTS

Infosys has signed a three-year contract with Prime Therapeutics to set up a testing centre of excellence (COE) and consolidate the delivery of its application testing services. Prime Therapeutics is a pharmacy benefit manager (PBM), which generally process prescriptions for the groups that pay for drugs, like insurance firms and negotiate with drug makers and pharmacies.

PROJECT AWARDED

Infrastructure firm Sadbhav Engineering has won Rs 212 crore highway project from National Highways Authority of India (NHAI) in Rajasthan.The company has been declared as the successful bidder in respect of the bid invited by NHAI for widening and strengthening of Jodhpur – Barmer Section of NH-112.The project falls under National Highway  Development Project (NHDP) phase IV to be constructed DS under EPC.