KLG Systel to invest in subsidiary

Coimbatore: KLG Systel Ltd has informed that the board of directors has resolved to transfer the Power Systems Solution (PSS) division to KLG Power Ltd, a subsidiary in which the company holds 99 per cent of the share capital, as a going concern by way of a slump sale, subject necessary approvals, with effect from April 1, 2008 and to invest in KLG Power Ltd up to Rs 125 crore.

It decided to give the Executive Chairman and Managing Director the power to sign the agreement between TPG Growth India I Ltd, KLG Power Ltd and the company, under which TPG will invest an amount of up to Rs 200 crore through unsecured Compulsorily Convertible Debentures carrying interest rate of 9.5 per cent in KLG Power Ltd for up to 20 per cent holding on diluted basis on the date of conversion.

TPG Growth India I Ltd, the mid-cap buyout and growth investment platform of TPG is one of the leading global private investment firms.