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Mercator Energy secures $55 million to fuel expansion

LiveMint logoLiveMint 04-06-2014 P.R. Sanjai

Mumbai: Shipping company Mercator Ltd on Wednesday said that its step-down overseas unit Mercator Energy Pte. Ltd has entered into an agreement to avail a facility of $55 million without disclosing the details of financing.

The facility will be compulsorily converted into equity shares of Mercator Energy in the event of listing of its shares at a pre-determined discount to the listing price, Mercator said in a filing to BSE.

“In the event of non-listing of its shares, the facility will be repaid at a pre-determined yield to maturity at the end of six years from the first drawdown,” it said.

Mercator Energy is engaged in carrying on the business of oil and gas and allied services of the Mercator.

This transaction will help Mercator Energy to expand in the oil and gas space.

The shares of Mercator ended at Rs36.30 on BSE, up 3.57% from previous close while India’s benchmark Sensex Index fell 0.21% to close at 24805.83 points.

The announcement came after trading hours.

Mumbai-based Mercator has diversified business interests in coal, oil, gas, commodity transportation and dredging.

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