Mumbai: Aditya Birla Group firm Grasim Industries Wednesday said it will sell its 53.63% stake in Shree Digvijay Cement Company (SDCC) to Cimpor - Cimentos De Portugal for Rs322 crore.
The board at its meeting Tuesday approved the sale of 7.58 crore equity shares representing 53.63% of SDCC for Rs 42.50 a share to Portugal-based cement producer -- Cimpor, Grasim Industries said in a communique to the Bombay Stock Exchange.
Pursuant to this transaction, expected to be completed by March 2008, SDCC would cease to be a subsidiary of Grasim, the company informed.
Cimpor - Cimentos De Portugal would acquire the shares through its subsidiary Cimpor Inversiones.
Cimpor Inversiones would later make a public offer for an additional 20% stake in SDCC in compliance with SEBI guidelines and on closing it would control SDCC.
“This decision to divest its equity in SDCC is primarily intended to rationalise its portfolio of plants,” Grasim Industries said.
“Cimpor was the preferred purchaser based upon its credentials, financial strength and stated practice of retaining employees of an acquired entity,” the company said.
The combined capacity of the Aditya Birla Groups cement business, which is currently 31 million TPA would move up to 45 million TPA by Q2 FY09, even after the disposal of SDCC stake.
ABN Amro Bank was the exclusive financial advisor to the company for the transaction.
Shares of the company were at Rs 3825, up 0.30% on BSE in morning trade.