Grasim Industries will acquire one-third stake in Swedish specialty pulp company Domsjo Fabriker, which was recently bought by group company Aditya Holding AB.
Grasim will invest Rs280 crore (Swedish kroner 380 million) to acquire the shares of Aditya Holding AB, which acquired the foreign firm through its 100 per cent subsidiary, Aditya Group AB.
"The board of directors of Grasim Industries Ltd at its meeting held today, approved the acquisition of a 1/3rd stake in Domsjo Fabriker AB," the company said in a filing with the Bombay Stock Exchange (BSE).
"This investment is subject to required regulatory approvals. The company expects to complete the acquisition by the month-end," it added.
Aditya Holding AB, which is owned equally by Indonesia-based PT Indo-Bharat Rayon (IBR) and Thai Rayon Public Company Ltd (TRC), acquired Domsjo last month through its wholly-owned subsidiary Aditya Group AB, for around Rs1,560 crore (SEK 2.12 billion).
Aditya Holding AB has invested SEK 1,140 million (around Rs840 crore) in Aditya Group AB as equity. Besides, it has made interim funding of SEK 1,022 million (around Rs753 crore) through bank loans.
Grasim will pay the same price, which IBR and TRC had recently paid for acquiring stake in Aditya Holding AB, the filing added.