Mytrah Energy chairman agrees to take company private

Indian renewable power producer Mytrah Energy Ltd (LON:MYT) announced today that its independent directors have approved a buyout bid that values the entire company at about GBP 78.9 million (USD 111m/EUR 90m).

The recommended cash offer was made by Raksha Energy Holdings Ltd (REHL), a special purpose vehicle established by the Jersey-based discretionary trust settled by Mytrah chairman Ravi Kailas. The Trust is the current controlling shareholder of Mytrah Energy, holding around 57.9% of the company’s existing issued shares excluding options.

REHL is proposing to pay GBP 0.45 per share in cash, which is a 63.6% premium to Mytrah Energy’s closing price on April 3 and a 52.5% premium to the company’s average closing price since January 4, 2018.

Commenting on the offer, Russell Walls, senior independent director of Mytrah Energy, noted that the company’s recent historical share price has been affected “by sentiment towards the Indian economy and the power and infrastructure sector in particular, as well as by the company's capital and ownership structure”. He went on to say that, in these circumstances, the proposal is acceptable.

Investec is acting as exclusive financial adviser to the target company.

Mytrah Energy is a wind power-focused company with a portfolio that includes 1,743 MW of installed and under construction wind and solar power assets located in the Indian states of Punjab, Rajasthan, Gujarat, Madhya Pradesh, Maharashtra, Andhra Pradesh, Telangana, Karnataka and Tamil Nadu. The company booked earnings before interest, tax, depreciation and amortisation (EBITDA) of USD 82.3 million (EUR 66.9m) on a revenue of USD 228.5 million in the first half of 2017.

(GBP 1.0 = USD 1.408/EUR 1.145)

(USD 1.0 = EUR 0.813)

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