Celestial Overseas Ventures, a British Virgin Island-based investor, plans to acquire five per cent stake in electronics major BPL Limited, thus taking up the foreign equity component in the Bangalore-based firm to 5.57 per cent.
The government has already permitted Celestial Overseas to make this acquisition, sources said, adding the transaction will be conducted between one of the BPL promoter companies Merino Finance Ltd and Celestial.
However, the worth of this deal could not be ascertained.
Of the total promoter stake of a little over 62 per cent in BPL, Merino holds 11.11 per cent, as per the shareholding pattern available with the Bombay Stock Exchange and will divest five per cent in favour of Celestial.
Thus, Celestail will acquire 13.845 lakh (1.38 million) shares of BPL during this transaction while non-resident/overseas corporate bodies' shareholding in BPL is already about 160,000 shares.
BPL, promoted by the Nambiar family, associates and persons acting in concert, has been faced with steadily decreasing sales of consumer electronics items led by colour televisions and a consequent funds crunch.
Despite several attempts, BPL chief Ajit G Nambiar could not be contacted for comments.
As on June 30, 2003, promoter stake in BPL stood at 62.15 per cent; institutional stake was pegged at 10.61 per cent while the Indian public held 23.37 per cent of the company's equity.