Mumbai, Apr 14 (ANI/Business Wire India): The Aditya Birla Group informed today that it has increased its stake from 75 per cent to 95 per cent in the two joint venture companies in Canada viz. AV Cell Inc and AV Nackawic Inc at a total consideration of around Canadian nine million dollars.
The group has acquired the additional 20 per cent stake in these two companies from Tembec Group. While Grasim Industries Ltd. has acquired the additional stake in AV Cell Inc increasing its holding in AV Cell from 25 per cent to 45per cent, PT Indo Bharat Rayon Indonesia, has acquired the additional 20 per cent stake in AV Nackawic.
Tembec's decision to dilute its stake in these two entities is part of their effort to focus resources on its core business units.
Director of Pulp and Fibre Business of Aditya Birla Group Shailendra K. Jain said, "This transaction fits very well with our strategy of securing cost effective Pulp requirements of the VSF business. The longstanding relationship with Tembec will continue as earlier and we at Aditya Birla Group are indeed happy that Tembec will remain a much valued shareholder in both the companies".
"The conversion of the AV Nackawic plant from Paper Grade pulp to Rayon Grade pulp is progressing well and is expected to be completed in July 2008," he added.