Mercator’s arm enters into agreement to avail facility of $55 million

05 Jun 2014

Mercator’s step-down overseas subsidiary - Mercator Energy (MEPL), engaged in carrying on the business of oil & gas and allied services of the company, has entered into an agreement on June 04, 2014, to avail a facility of $55 million.

The said facility will be compulsorily converted into equity shares of MEPL in the event of listing of its shares at a pre-determined discount to the listing price. In the event of non-listing of its shares, the facility will be repaid at a pre-determined yield to maturity at the end of 6 years from the first drawdown. This transaction will help MEPL to expand in the oil and gas space.

Mercator is the second-largest private sector shipping company on a consolidated basis in India, in terms of tonnage capacity. The group has a presence in varied segments namely shipping, offshore services, oil exploration and production, dredging, coal mining/trading and logistics.

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1.10 0.05 (4.76%) May 14, 18:01
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Company Name CMP
Shipping Corpn. 110.10
GE Shipping 398.30
Dredging Corp 386.85
Shreyas Shipping 98.00
Essar Shipping 9.45
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