Portuguese cement maker Cimpor acquires 73.6-per cent stake in Grasim's Shree Digvijay Cement

28 March 2008

Mumbai: Portuguese cement maker Cimpor Cimentos de Portugal SGPS SA has bought a controlling 73.63 per cent stake in Shree Digvijay Cement Company for a total of about 70 million euros (approximately Rs4412.8 / $110.5 millio).

Under a deal, concluded late last year, Cimpor had acquired 53.6 per cent of Shree Digvijay from Grasim Industries. Cimpor made a mandatory public offer for additional 20 per cent earlier this month, taking the total stake to 73. 63 per cent.

The acquisition gives Cimpor access to the world's second largest cement market and boosts its worldwide cement production capacity to 29.5 million tonnes per year, the company said in a statement.

Cimpor is now among the world's top 10 cement makers, it said.

Late last year, Cimpor had bought 53.63 per cent of Shree Digvijay's equity capital from Grasim Industries at Rs42.5 a share, valuing the company at Rs674 crore (117 million euros).

Grasim Industries Ltd, flagship of the Aditya Birla Group, offloaded its entire stake in Shree Digvijay Cement to Cimpor through its subsidiary, Cimpor Inversiones S.A. at a consideration of Rs322 crore.