India Globalization Capital, Inc. (IGC) Updates Indications of Interest From Certain Investors to Purchase Outstanding Shares of
March 06 2008 - 8:21PM
PR Newswire (US)
BETHESDA, Md., March 6 /PRNewswire-FirstCall/ -- India
Globalization Capital, Inc. (AMEX: IGC.U, IGC, IGC.WT, "IGC")
announced today that investors have indicated an interest in
purchasing up to an aggregate of approximately 2,500,000
outstanding shares of IGC's common stock and using their reasonable
efforts to assist brokers in causing such shares to be voted in
favor of IGC's proposed acquisition of a 63% equity interest in
Sricon Infrastructures, Limited ("Sricon") and a 77% equity
interest in Techni Bharathi Limited (collectively, the "Proposed
Acquisition") at IGC's upcoming Special Meeting of Stockholders to
be held today. These investors have indicated that these purchases
would be conditioned on receiving additional shares of IGC common
stock from certain of IGC's founders and other parties upon the
closing of the Proposed Acquisition in an amount equal to the
shares they purchase. The founders and other parties have agreed to
make available up to an aggregate of approximately 2,500,000 shares
for delivery to the investors. The proposed share deliveries by
IGC's founders and other parties are conditioned on the investors
agreeing to purchase and use their reasonable efforts to assist
brokers in causing shares of IGC common stock to be voted in favor
of the Proposed Acquisition and the other items of business to be
considered at IGC's Special Meeting of Stockholders to be held on
March 7, 2008 and on the approval by stockholders, and subsequent
consummation of, the Proposed Acquisition. IGC expects that any
purchases by these investors would be effected in privately
negotiated transactions with IGC stockholders who were stockholders
of IGC as of the February 4, 2008 record date and who have voted
against the Proposed Acquisition and have stated their intention to
seek conversion of their shares into a pro rata share of the trust
fund established in connection with IGC's initial public offering.
These shares would be purchased at prices to be negotiated between
the sellers and the investors, although it is expected that the per
share price would be equal to the per share amount held in trust
for payment to the holders of IGC common stock who vote against the
Proposed Acquisition and request conversion of their shares. The
amount in the trust is currently estimated at $5.94 per share (net
of taxes). The investors also would be entitled to certain demand
and piggyback registration rights that were granted to the IGC
founders in respect of their pre-IPO shares. ABOUT IGC Based in
Bethesda, Maryland, IGC is a special purpose acquisition company
for the purpose of acquiring, through a merger, capital stock
exchange, asset acquisition or other similar business combination,
one or more operating businesses with primary operations in India.
IGC raised approximately $67.8 million in gross proceeds through
its initial public offering consummated in March 2006 and has
dedicated its time since the initial public offering to seeking and
evaluating business combination opportunities in India. ADDITIONAL
INFORMATION IGC has filed with the SEC a definitive proxy statement
and a supplement to the definitive proxy in connection with the
Acquisition Proposal. Investors are urged to carefully read the
proxy statement, supplement and any other relevant documents filed
with the SEC when they become available, because they will contain
important information about IGC and the Acquisition Proposal.
Copies of the proxy statements and other documents filed by IGC
will be available at the website maintained by the SEC at
http://www.sec.gov/. FORWARD-LOOKING STATEMENTS: This press release
may contain forward-looking statements. These statements reflect
management's current views and are subject to risks and
uncertainties that could cause actual results to differ materially
from those expressed or implied in these statements. Factors, which
could cause actual results to differ, relate to the ability of the
investors to successfully consummate the share repurchases
contemplated. We undertake no obligation to publicly update any
forward-looking statements, whether as a result of new information,
future events or otherwise. Other factors that could cause or
contribute to actual results differing materially from such forward
looking statements will be discussed in greater detail in the
company's Securities and Exchange Commission filings. DATASOURCE:
India Globalization Capital, Inc. CONTACT: Ram Mukunda of India
Globalization Capital, Inc., +1-301-983-0998, Fax: +1-240-465-0273,
Web Site: http://www.indiaglobalcap.com/ http://www.sec.gov/
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