 "Birla Corp rallies on plan to buy cement businesses from Lafarge")
Birla Corporation has rallied 9% to Rs 495 on the National Stock Exchange (NSE) in early morning trades after the company announced plans to acquire the Jojobera and Sonadih cement businesses from Lafarge India for an enterprise value of Rs 5,000 crore.
The stock has hit a high of Rs 519 on the NSE so far. The trading volumes on the counter have more-than-doubled, with a combined 73,092 shares changing hands on the counter on the NSE and BSE till 09:45 AM.
“The company has agreed to a transaction with Lafarge India Private Limited (Lafarge India), whereby Birla Corp, either directly or through its wholly owned subsidiary, shall acquire both the Jojobera and Sonadih cement businesses from Lafarge India for an enterprise value of Rs 5,000 crore,” Birla Corporation said in a statement.
The transaction would be funded through existing cash reserves and incremental debt, and is subject to approval of Competition Commission of India (CCI) and other relevant regulatory approvals, the company added.
Under this transaction, Birla Corp will acquire the business, comprising an integrated cement unit at Sonadih (Chhattisgarh), a cement grinding unit at Jojobera Qharkhand), along with Concreto and PSC brands and an excellent management team.
Upon completion of this transaction, Birla Corp will consolidate its position in the eastern India cement market, where the demand supply scenario and outlook continue to remain buoyant.
The stock has hit a high of Rs 519 on the NSE so far. The trading volumes on the counter have more-than-doubled, with a combined 73,092 shares changing hands on the counter on the NSE and BSE till 09:45 AM.
“The company has agreed to a transaction with Lafarge India Private Limited (Lafarge India), whereby Birla Corp, either directly or through its wholly owned subsidiary, shall acquire both the Jojobera and Sonadih cement businesses from Lafarge India for an enterprise value of Rs 5,000 crore,” Birla Corporation said in a statement.
The transaction would be funded through existing cash reserves and incremental debt, and is subject to approval of Competition Commission of India (CCI) and other relevant regulatory approvals, the company added.
Under this transaction, Birla Corp will acquire the business, comprising an integrated cement unit at Sonadih (Chhattisgarh), a cement grinding unit at Jojobera Qharkhand), along with Concreto and PSC brands and an excellent management team.
Upon completion of this transaction, Birla Corp will consolidate its position in the eastern India cement market, where the demand supply scenario and outlook continue to remain buoyant.
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