Easun Reyrolle may acquire US-based power co: Srcs

Nimesh Shah, CNBC-TV18 analyst has informed that according to sources, Easun Reyrolle is close to an overseas acquisition. Sources added that the deal would be possibly finalised in a month’s time. They have said that, both the agencies (the acquiring and acquired company) are in the last leg of negotiations.

If the deal goes through, probably they will seal the deal in the next one-month’s time. It is estimated that the target company is a US based company in the power space.

Though the deal is not yet known, it has been learnt that the deal size can be more than USD 50 million approximately. This could be a structured deal; the upfront payment would be close to USD 50 million and there may be further payments, going forward.

Part of the money will be funded through FCCB proceeds and the company is very close to closing the FCCB issue as well. Probably in a day or two, it will become public whether they have closed the FCCB issue. The investment banking circles are saying that it is going to be a combination of FCCB and GDR . This means they are raising close to USD 50 to 55 billion via overseas issue. Majority of it will be an FCCB issue and part of it would be GDR issue.