Rain Commodities to merge with Rain Calcining

New Delhi, Feb 8: Rain Commodities Ltd will merge its calcined petroleum coke (CPC) business, Rain Calcining Ltd (RCL), in which it has 0.77 per cent interest with itself.

The move is close on the heels of its decision to acquire 73.56 per cent stake in the United States' leading calcined petroleum coke producer GLC Carbon.

The company proposes to integrate the calcined petroleum coke CPC business of RCL with that of GLC Carbon, to be acquired by Rain Commodities (US) Inc, its wholly-owned subsidiary.

The merger is aimed at creating the world's largest calcining company with assets in India, Kuwait, the US and Argentina with a combined market share of nearly 28 per cent of CPC sales in the western world, the company said.

Rain Commodities also expects the take over to be helpful in developing its proposed 2,40,000 tonnes per annum capacity greenfield CPC plant with co-generation facility at Visakhapatnam besides assuring low-cost power and fuel grade petroleum coke to the cement operations of its 100 per cent subsidiary Rain Industries Ltd (RIL).

RIL cement business is also proposed to be transferred as a going Concern under a scheme of arrangement. Both the schemes have been approved by the board of directors of the companies.

The board have also granted permission to appoint advisors for determining the share exchange ratio between the shares of RCL and the company.

On Februaury 5, Rain Commodities announced it will acquire 73.56 per cent stake in GLC Carbon from Toronto's Great Lakes Carbon Income Fund for 437 million dollars in cash.

Rain Commodities (US) Inc already has 20.23 per cent equity interest in GLC Carbon. While 3.37 per cent of GLC Carbon company is held by by management, the remaining 2.84 per cent is in possession of a third party holder.

Rain Commodities (US) has 4.99 per cent in Rain Calcining.

''The proposed transaction and the greenfield CPC plant are in line with our strategy to create global CPC assets across various geographical regions,'' the company had said in a statement.

UNI