Ram Kaashyap to buy oil firm Gemmia for $150 mn

Chennai-based Ram Kaashyap Investment has decided to acquire Gemmia Worldwide SA, an oil sludge treatment and recycling company based in Tortola (British Virgin Islands), for $150 million.

The company board today approved the MoU to be signed with with Tanian Conslidated Ltd. The target company offers open reservoir cleaning services and technologies andmiscellaneous clean technology development and has assets and operations in Russia, USA, India, China and in southeast Asia.

The company would fund the acquisition through GDRs or in combination of cash and equities, according to its filing to the BSE.

In other related moves, the company board would seek shareholder nod for increasing its authorised capital to Rs 600 crore, enhancement of its borrowing powers to Rs 500 crore, raising up to $150 million through ADR, GDR or FCCBs and an amendment to its object clause of its memorandum of association.

The company is also planning to enter into a strategic business agreement with Delhi-based Ariva Technologies to strengthen its core competence in oil and gas business. It would hive off its media division into a 100 per cent subsidiary.