StanChart holds 10.63% in Castex after Amtek bond conversion

The acquisition is the result of the mandatory conversion of the Amtek India's US$130 million 6% convertible bonds 2017 issued by Castex, says a disclosure notice issued by SCBS.

Standard Chartered Bank Singapore (SCBS) and Standard Chartered Bank Mauritius (SCBM) now hold 10.63% equity stake in Castex Technologies Ltd., an Amtek group company, according to a stock exchange disclosure.

The acquisition is the result of the mandatory conversion of the Amtek India's US$130 million 6% convertible bonds 2017 issued by Castex, says a disclosure notice issued by SCBS. 

The notice, however, adds that the mandatory conversion notice issued by the company may not have been validly exercised. The mandatory conversion notice does not satisfy the conditions of the bonds, it says.

“If the mandatory conversion notice is found to be invalid and of no effect, the acquirers SCBS and SCBM will consider that the bonds remain outstanding and the shares acquired by the entities as a result of the purported mandatory conversion will be returned to Castex," according to the disclosure.

“It will, however be subject to the ongoing proceedings involving Castex before the English Court,” it adds.

It may be recalled that Amtek bondholders were looking to approach UK courts, alleging manipulation of the Castex stock price. 

The bondholders felt that the stock price was pushed up to force a conversion of foreign currency convertible bonds (FCCBs) into equity shares.