Dalmia Cement to acquire 50 per cent stake in Calcom Cement for Rs238 crore
16 Jan 2012
Dalmia Cement (Bharat) Ltd, a subsidiary of Dalmia Bharat Enterprises Ltd, will acquire up to 50 per cent of the share capital of Calcom Cement India Ltd for an around Rs238 crore.
The decision was taken at a meeting of the merger and acquisitions committee of the company today, the company said in a filing with the Bombay Stock Exchange (BSE).
The company plans to make the investment in various tranches, through a combination of new issuances and acquisitions, subject to the various terms and conditions set out in the definitive documentation, the filing said.
Calcom Cement India Ltd, based out of Assam, is a manufacturer of OPC and PPC cement and is currently expanding its consolidated cement manufacturing capacity to 2.1 million tones per annum.
Actis-backed Dalmia Bharat Enterprises Ltd (DBEL) is expanding its cement business through Dalmia Cement (Bharat) Ltd, which in turn is backed by private equity giant KKR.
The deal values Calcom Cement at Rs576 crore. This translates into a valuation of around Rs2,743 per tonne (given its immediate project capacity) or Rs3,388 a tonne (based on its initial capacity of 1.7 million tonne).