Chinese conglomerate Jiangsu Longzhe is reportedly all set to buy majority stake in Diamond Power Infrastructure for around Rs 840 crore or $125 million. In this regard, the banks had invoked the strategic debt restructuring (SDR) clause last week, which will help them in acquiring control of the company.
Jiangsu Longzhe is likely to invest in $25 million as equity; the remaining $100 million will be infused as debt. Initially, the Chinese company would buy 26% from lenders and will increase stake to 51% though an open offer to public subsequently.
Diamond Power Infrastructure is engaged in five business verticals--cables (low, high and extra high voltage), conductors, transformers, towers and various EPC projects-- where it undertakes planning, designing and commissioning of turnkey transmission and distribution projects.
