Murugappa Group’s Tube Investments buys controlling stake in CG Power

A year after promoter Gautam Thapar was forced to quit CG Power and Industrial Solutions board as chairman, the company has a new owner. Murugappa Group’s Tube Investments of India taking control of the company, in a Rs 700-crore deal agreed to on Friday.

CG Power and Tube Investments, in separate statements to the BSE, said the two companies had entered into an agreement for allotment of equity shares and issuance of warrants, aggregating to a value of Rs 700 crore. Post allotment of securities, Tube Investments will have the right to appoint a majority of the directors on the company board.

Tube Investments will take control in a two-part deal. The first entails allotment of 64.25 billion equity shares of CG Power to Tube Investments at the face value of Rs 2 each share and at a price of Rs 8.56 apiece,