First Leasing dismisses 'speculative' rumours of stake sale

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First Leasing dismisses 'speculative' rumours of stake sale

First Leasing has been buzzing around in the market on rumours of a stake sale. Buzz has it that the company is all set to sell 21% in First Leasing to companies like Temasek and Tata Chemicals. However, company chairman AC Muthiah tells CNBC-TV18 that the news of such stake sale is ‘speculative rumours’.

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Excerpts from Bazaar on CNBC-TV18 Watch the full show » ALSO READ See latest News about First Leasing See previous management interviews See what other Experts & Brokerages are saying about First Leasing First Leasing BSE | NSE 29/05/12 Are Mutual Funds betting on First Leasing? Other Stocks in this news Tata Chemicals | Southern Petrochemical Industries Corporation |

First Leasing has been buzzing around in the market on rumours of a stake sale. Buzz has it that the company is all set to sell 21% in First Leasing to companies like Temasek and Tata Chemicals . However, company chairman AC Muthiah tells CNBC-TV18 that the news of such stake sale holds no ground and are merely 'speculative rumours'.

Below is a transcript of AC Muthiah's interview with CNBC-TV18. Also watch the accompanying video.

Q: Is there any truth to the rumours that you are selling 21% stake in First Leasing to companies like Temasek and Tata Chemicals?

A: These are all just rumours, I have not sold any of my shares. I am not in talks to sell stakes at all. I have informed the exchange as well. These are all speculative rumours.

Q: Aside from what you hold in your personal capacity, any plans of offloading the stake in First Leasing?

A: There is no such move at the moment.

Q: The reason this kind of news is doing the rounds is due to expectation that perhaps you are looking to pump more money interest into Southern Petrochemical Industries Corporation Limited (SPIC). Is there any such plan on divesting?

A: We are not divesting to invest in SPIC. SPIC is doing well right now and the plans of disinvestments are a rumour.

Q: SPIC has also been doing well in the market. Has there been a turnaround?

A: SPIC is doing very well now, in the last quarter results that we have already announced we have done pretty well.

Q: Do you need any cash infusion into SPIC from here on?

A: We don't need investment plans. There is no such move right now. The company is doing very well on its own and own production is doing well. We have not yet done the restructuring and we are in talks now.

Q: Is there any option either to raise money via some kind of QIP or equity instrument or indeed to look at hiving off a particular vertical in First Leasing to another investor?

A: No, we have not thought of anything like that. Money raising plan for SPIC is being worked out but nothing has been finalized as yet.

Q: What is First Leasing's capital adequacy at this point? Does it need to raise any equity capital at all to fund its own growth plans?

A: Not at the moment, at the moment we are quite comfortable.

Q: Do you categorically state that you have had no conversations with Tamesak or Swiss Re?

A: No, we haven't had any such conversations.