Calcutta, Dec. 18: The RPG group-controlled power utility CESC today informed stock exchanges that Platinum Asset Management Company of Australia had acquired 36.08 lakh shares, representing 5.45 per cent of its equity capital, earlier this month.

Platinum manages Australian $9.2 billion (US $6.8 billion) in assets and specialises in equity investments. Soros Fund Management of the United States (promoted by investment wizard George Soros) has a minority stake in the firm.

CESC’s notice to bourses said the acquisition took place on December 3 in the “open market”. Platinum’s holding in CESC is currently valued at Rs 50 crore. The stock closed at Rs 137.80 on NSE today.

Founded in 1994 by professionals who had stellar performance records with Bankers Trust Australia, Platinum offers a range of funds focusing on regions and sectors. More than 20 per cent of its assets are from outside Australia and New Zealand. It concentrates on out-of-favour stocks, and claims to have consistently delivered above average returns.

Platinum’s acquisition of a substantial holding in CESC explains in part the flare up in the company’s share price. CESC is among the top gainers in the last one year. Investors’ interest in the power utility stems from the turn in its fortunes due to revision of tariff. CESC posted a net profit of Rs 38 crore in the first half of fiscal 2004.

Not only has it crept out of red, analysts expect CESC to record a profit of Rs 10 per share this year. It is now looking to cut costs by retiring employees and swapping high-cost debts with cheaper ones. CESC has recently managed to obtain lenders’ nod to cut interest cost by around 450 basis points to 13.5 per cent.