NEW YORK, Nov. 22, 2013 /PRNewswire/ -- On
November 22, 2013, Millennium India
Acquisition Company Inc. (the "Company" or "MIAC" or "SMCG")
(Ticker: SMCG) announced the following updates with respect to
its investment in SMC Global Securities Ltd. ("SMC Global").
SMC Global is a brokerage firm based in New Delhi, India. The Company owns a
14.03% common stock ownership in Interest in SMC Global.
On November 8, 2013, the Company
received a dividend in the amount of $60,903.74 from SMC Global. In declaring this
dividend, Mr. Subhash C. Aggarwal,
Chairman and Managing Director of SMC Global, stated "this dividend
represents the first dividend made by SMC Global and is a direct
result of the progress we have made over the past year in growing
our earnings. This dividend is based on our confidence that
we can continue to grow our earnings per share and return capital
to our shareholders in the form of future dividends."
On November 22, 2013 the Company
reached an agreement to sell 1,131,345 shares of SMC Global at a
price of INR 75 per share which translates to $1.21 per SMC Global share based on the current
exchange rate of INR 62 per USD. This translates to total
consideration for SMCG of approximately $1,368,562.50 based on the current exchange rate
of INR 62 per USD. The purchaser is an India based private company that is an
existing owner of SMC Global common stock. The purchase is
expected to be completed within the next 10 days. The ultimate U.S.
Dollar value will depend on the exchange rate prevailing at the
time of completion of the purchase. Upon completion of this
purchase (the "Initial Purchase"), the Company will own 14,736,035
shares of SMC Global and will have sold approximately 7% of its
shares.
Separately, on November 22, 2013
the Company reached an agreement with SMC Global and the promoter
group ("Promoter Group") of SMC Global to extend the date of
listing of the shares of SMC Global on the NSE / BSE. The Promoter
Group includes Mr. Subhash C Aggarwal and Mr. Mahesh C Gupta (Vice
Chairman and Managing Director) and in total owns 58.62% of SMC
Global.
The material terms of the agreement are summarized as
follows:
- The Company and SMC Global have agreed to defer the timing of a
listing of SMC Global's shares on either the Bombay Stock Exchange
or the National Stock Exchange in India until March 31,
2015, and have agreed that such listing shall happen
pursuant to a further public offer of at least 10% shares of SMC
Global on a fully diluted basis. As part of this extension, the
Company has agreed to withdraw the draft red herring prospectus
("DRHP") currently filed with the Securities and Exchange Board of
India for the public offer of
securities of SMC Global.
- The Promoter Group will provide a one-time entitlement (the
"Right to Sell") to the Company to sell 1,131,345 shares of SMC
Global at a price of INR 125 per share which translates to
$2.02 per SMC Global share based on
an exchange rate of INR 62 per USD. The ultimate U.S. Dollar value
will depend on the exchange rate prevailing at the time of exercise
of the Right to Sell. The Right to Sell will be exercisable within
a period of 180 days starting on March 31,
2015 if SMC Global has not completed a listing by
March 31, 2015 on the Bombay Stock
Exchange or the National Stock Exchange in India pursuant to a further public offering of
at least 10% shares of SMC Global on a fully diluted basis. The
total consideration for the shares if the Right to Sell is
exercised will be approximately $2,280,937.50 assuming an exchange rate of INR 62
per USD. The ultimate U.S. Dollar value will depend on the exchange
rate prevailing at the time of exercise of the Right to Sell. If
the Right to Sell is exercised and no other sales of shares are
consummated by the Company, SMCG will own 13,604,690 shares of SMC
Global.
Based on the above described, it is possible that the Company
will receive total cash proceeds of approximately $3,710,000 or approximately $.44 per MIAC share between now and the end of
the Right to Sell period starting on March
31, 2015 as a result of the dividend (assuming no other
dividends are declared) and assuming the completion of the Initial
Purchase and the granting and exercise in full of the Right to
Sell. The ultimate U.S. Dollar values would depend on the exchange
rates prevailing at the respective times of completion of the
transactions. In addition, the Company would still own 13,604,690
shares of SMC Global representing approximately 86% of its original
shareholding assuming no other sales of stock.
David Lesser commented that "the
Company is working hard on the original three-point strategy to
create value for its shareholders that was outlined in the
definitive Consent Solicitation Statement that was filed with the
SEC by Hudson Bay Partners on September
5, 2013.We continue to evaluate overall cost reductions for
MIAC. We have made progress in performing a strategic evaluation of
SMC Global and have now entered into a transaction that we believe
is attractive as a starting point to creating liquidity for a
portion of our holdings in SMC Global at a premium to the imputed
value based on the recent trading price for MIAC's shares. We are
also actively working on some new business prospects to expand our
investment base, subject to applicable legal requirements. Our
focus for investment is the acquisition of income producing energy
infrastructure and power generating assets. We look forward
to providing additional details as to further developments of this
strategy in the future."
MIAC also announced that its board has today authorized a
buyback of up to 800,000 shares of its stock. Buybacks will
be made from time to time based on the view of the Company of its
trading price relative to its underlying value and subject to
compliance with applicable legal requirements.
About Millennium India Acquisition Company Inc.
MIAC's principal asset is its ownership of a equity interest in
SMC Global.
About SMC Global Securities, Ltd.
SMC Global is a financial services firm headquartered in
New Delhi. Its products and
services include institutional and retail brokerage, equity and
commodity research, equity, commodity and derivative arbitrage and
trading, on-line trading services, investment banking, custodial
services, clearing services, distribution of mutual funds, IPOs and
insurance products, and wealth management services. SMC's retail
investor networks serve the needs of a reported 700,000 + investors
presently. Its retail distribution footprint in India totaled over 2,500 locations, as of
March 31, 2013. Currently, SMC has
approximately 2,900+ employees and a retail distribution network of
21,000 + channel partners for third party products distribution, in
500 + cities across India.
Cautionary Statement about Forward-Looking Statements
This document includes forward-looking statements within the
meaning of the U.S. securities laws. Forward-looking statements are
those that predict or describe future events or trends and that do
not relate solely to historical matters. You can generally identify
forward-looking statements as statements containing the words
"believe," "expect," "will," "anticipate," "intend," "estimate,"
"project," "plan," "assume", "seek" or other similar expressions,
or negatives of those expressions, although not all forward-looking
statements contain these identifying words. All statements
contained in this document regarding our future strategy, future
operations, future prospects, the future of our industries and
results that might be obtained by pursuing management's current or
future plans and objectives are forward-looking statements. You
should not place undue reliance on any forward-looking statements
because the matters they describe are subject to known and unknown
risks, uncertainties and other unpredictable factors, many of which
are beyond our control. Our forward-looking statements are based on
the information currently available to us and speak only as of the
date of the filing of this document. Over time, our actual results,
performance, financial condition or achievements may differ from
the anticipated results, performance, financial condition or
achievements that are expressed or implied by our forward-looking
statements, and such differences may be significant and materially
adverse to our security holders.
Contact:
David H. Lesser
+1 (212)
750-0371
david@dlesser.com
SOURCE Millennium India Acquisition Company Inc.
