France's Saint-Gobain, a global leader in construction, building materials and glass, will acquire Electrotherm India's pipe business and 100% stake in a subsidiary of the company for Rs 950 crore.
"Electrotherm had today executed binding agreement pursuant to which Saint-Gobain Pour La Construction SAS will acquire Electrotherm's Ductile iron pipes business for Rs 950 crore plus the value of working capital at closing," Electrotherm Ltd said today in a filing to the Bombay Stock Exchange (BSE).
The transaction will be subject to the terms and condition as set out in the binding agreement entered by the parties, it added.
The company which achieved a sales of over Rs 2,300 crore in 2010-11, is India's largest manufacturer of induction melting furnace and refining equipment.
Saint-Gobain has presence in 64 countries and employs nearly 190,000 employees.
Shares of Electrotherm ended at Rs 151.60 on the BSE, down 7.95% from previous close.
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