Mytrah Energy Limited’s (LON:MYT) chairman Ravi Kailas is set to take the Indian wind power group private with a cash bid of 45p per share.
Kailas’ vehicle Raksha Energy already owns 57.9% of the shares and the offer, pitched at a 64% premium to the price yesterday, is being recommended by Mytrah’s independent directors.
Mytrah shares have struggled despite an expansion spree that has seen the company’s electricity generating capacity surge towards 1.7Gw.
Russell Walls, senior independent director, said the share price had been affected by negative sentiment towards the Indian economy and the power and infrastructure sector particularly, as well as by the company's capital and ownership structure.
At the offer price, Mytrah is valued at just under £79mln.
Shares rose 58% to 43.4p.