Information  X 
Enter a valid email address

Dhir India Inv. plc (DHIR)

  Print      Mail a friend

Tuesday 04 December, 2007

Dhir India Inv. plc

Investment

Dhir India Investments plc
04 December 2007

4 December 2007

                           Dhir India Investments plc
                        ("Dhir India" or the "Company")

             Acquisition of Interest in Assets in Sonepat, Haryana

Dhir India (AIM: DHIR), the first UK quoted company established to invest in the
circa $50 billion Indian non performing assets sector, announces that it has
committed to acquire a 51 acre prime site located in Sonepat, Haryana. The SPV
created has already invested £1.51 million, of which DII's contribution to date
is £1.13 million. This investment is secured on the assets belonging to the
target company, including existing buildings on the site. The land has the
potential to be developed as an IT Park, Special Economic Zone or a mixed use
residential and commercial scheme. The project will take around 12 months to
complete.

Commenting on this investment, Alok Dhir of Dhir India stated:

"This acquisition offers a number of potentially rewarding opportunities as the
site has the potential to be converted into an IT Park, SEZ or residential and
commercial development. The land is located on National Highway 1, at just 50 km
from Delhi in an area undergoing tremendous development as a satellite township
of New Delhi, the Capital of India."

"The fundamentals of the Indian underperforming assets sector remain intact and
we continue to see a number of promising opportunities to leverage our expertise
and access to capital to create value for our shareholders."

For further information, please contact:

Shiva Consultants       Evolution Securities       Tavistock Communications
Alok Dhir               Tom Price                  Simon Hudson
Shivi Agarwal           Jeremy Ellis               Rachel Drysdale
                        Chris Clarke
Tel: + 91 11 42410000   Tel: +44 (0) 20 7071 4300  Tel: + 44 (0) 207 920 3150

Notes to Editors

Dhir India seeks to provide shareholders with both income and capital growth and
was the first UK quoted vehicle to provide western fund managers with the
opportunity to invest in the Indian non performing assets market. In July 2007
it raised £25 million and commenced trading on AIM.
The Company primarily considers four types of investment opportunity:

        Turnaround of companies
        Re-sale of assets or companies
        Break-up and sale of assets
        Bridge financing

The current stock of non performing assets (NPAs) in India was built up
primarily as result of the transformation of the Indian economy in the 1990s
from a centrally regulated to a more free market economy. During this time,
commercial lending rates were as high as 18-20 per cent. per annum, whilst the
industrial growth rate remained sluggish at 2-3 per cent. per annum and Indian
industries could not cope with the competition from international companies,
which did not have such a high cost of capital.

This has created an opportunity to invest in NPAs, which are typically
over-leveraged capital structures with insufficient liquidity and in default of
their obligations to creditors. Often these companies have significant assets
and/or solid underlying business fundamentals, which are not being fully
utilised in spite of the fact that the rate of growth in the industrial sector
has caught up with that of the rest of the economy, being an estimated 9-10 per
cent. per annum since 2004-2005.

In such circumstances, Dhir India believes that the resolution of the existing
debts, and in some cases a turnaround of the underlying business, can lead to
substantial profits on exit from the investments being generated in the short
and medium term.




                      This information is provided by RNS
            The company news service from the London Stock Exchange

a d v e r t i s e m e n t