SPV that is the special vehicle of JP Morgan has brought 25% Stake in Binani cement for an undisclosed amount. The stake sale is a part of Binani Cement capacity to 4m tonnes.Company has ordered machinery from FL Smidth for the expansion. The new Kiln will have a rated capacity of around 6,000 tonnes per day. Company officials are tight lipped about the cash inflow and industry observers expect the sale to fetch around Rs 150 crore, thus valuing Binani Cement at Rs 600 crore. Binani Industries said on Monday that the company has entered into sale and purchase agreement with SPV investments(Mauritius) pursuant to which the company has agreed to sell 25% , subject to certain conditions to closing. Binani Industries shares jumped 5% to Rs 66.70m on Monday. Binani cement is likely to repay its partly debt from the proceeds of the private placement. Financial Institutions have given the Binanis Rs 600 crore , the diversified group has been scouting for financial / strategic partners for its cement and zinc business for sometime.
Domestic lenders have asked the group to pare its stake in its cement and zinc subsidaries which would inturn finance its expansion plans. The wholly owned subsidiaries of Binani Industries has an installed capacity of 30,000 tones whereas Binani Cement currently has an installed capacity of 2.2m tonnes of cement.
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| Posted : 9/27/2005 |
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