New Delhi, Dec 5 (UNI) Grasim Industries Ltd today said its board has approved the sale of its 53.63 per cent equity stake in Shree Digvijay Cement Company Ltd (SDCCL) to CIMPOR Inversiones SA (Cimpor) for Rs 322 crore at a price of Rs 42.50 a share.
''The Board of Directors met yesterday approved the sale of 75,816,681 equity shares representing 53.63 per cent of the capital of SDCCL to CIMPOR Inversiones SA (Cimpor) for an aggregate consideration of Rs 322 crore at a price of Rs 42.50 per share,'' a statement said.
The transaction expected to be completed by March 2008, it added.
The sale of the shares will be concluded upon completion of the public offer which is required to be made by Cimpor to the shareholders of SDCCL under the SEBI (Substantial Acquisition of Shares and Takeover) Regulations, 1997.
Cimpor Inversiones will make a public offer for a further 20 per cent only of the equity in SDCC in compliance with SEBI Regulations and on closing it will control SDCC.
The company acquired SDCC in 1998 to gain a presence in the Gujarat market, through SDCC's 1.07 million TPA capacity.
Subsequently, the company acquired a further six million TPA capacity in Gujarat through its acquisition of Ultra Tech Cement in 2004.
The combined capacity of the Aditya Birla Group's Cement Business, which is currently 31 million TPA will move up to 45 million TPA by Q2 FY09, even after the disposal of SDCC stake.
This will be achieved through new plants currently under installation in both the company and its subsidiary, UltraTech Cement Ltd.