Empee Sugars board approves disinvestment of power business
The company said that it has received SARFAESI notice from Andhra Bank
BS Reporter | Chennai October 27, 2014 Last Updated at 19:40 IST
Empee Sugars and Chemicals Ltd, the sugar business of Chennai-based Empee Group, has decided to disinvest its power business under Empee Power Company Ltd. The company also said that while a notice was sent by Andhra Bank, Chennai, under the SARFAESI act, it is ineffectual since the Bank does not constitute a valid majority under the consortium of bankers.
In an announcement to the exchanges, the company said that a a Board meeting held today has decided to sell 100 per cent of the shareholding it held in the subsidiary company Empee Power Company (India) Ltd, subject to the approval of the shareholders of the company and other statutory approvals.
It also said, "The Board took note of SARFAESI Notice received from Andhra Bank, Chennai. Since Andhra Bank does not constitute a valid majority under consortium of bankers, the said notice is ineffectual according to legal opinion obtained by the company. The company has proposed to send a reply notice to Andhra Bank." It also took note of recall notice received from Empee Distilleries Ltd, the holding company, recalling share application money of Rs 140.37 crore.
The Board also decided to withdraw the Composite Scheme of Amalgamation of Empee Distilleries Limited with the Company, pending before the High Court, Andhra Pradesh. The Board took note of the winding up petitions filed and pending before the High Court in respect of ISGEC Heavy Engineering Ltd , Paharpur Cooling Systems Ltd and Jain Irrigation Systems Ltd ans said that since these companies has invoked arbitration the company is taking appropriate legal action in respect of winding up and arbitration matters.
The company website says that the Group currently generates power in various locations with a combined output of over 82MW. This include 20 MW Power Plant - a cogeneration Plant attached to the Sugar Mill at Naidupet, Andhra Pradesh, an Independent Power Plant of 50 MW at Ambasamudram, Tamil Nadu, Biomass Based Renewable Energy Power Plant of 10 MW at Pudukottai District, Tamil Nadu and 2.50 MW Capacity Wind Mills at Tirupur Dist operated by Empee Distilleries Ltd.
