Rain Commodities gains after arm acquires Belgium's Rutgers

Rain CII Carbon LLC agrees to buy Rutgers, a Belgium-based manufacturer of coal tar pitch for euro 702 million or Rs 4,900 crore.

Rain Commodities is trading higher by 6% at Rs 43.60 after the company said its subsidiary has agrees to buy Rutgers, a Belgium-based manufacturer of coal tar pitch for euro 702 million (approximately  Rs 4,900 crore).

“Rain CII Carbon LLC, a wholly owned step-down subsidiary of Rain Commodities has agreed to acquire Rutgers N.V. a Belgium headquartered coal tar pitch manufacturer, from funds advised by Triton,” Rain Commodities said in a filing.

Rain CII said the company planned to fund the transaction through a combination of internal cash accruals and proceeds of euro 533 million by selling long-term bonds. While Citigroup Global Markets is the financial advisor for the deal, Skadden, Arps, Slate, Meagher & Flom LLP are the legal advisors.

The stock opened at Rs 42.80 and hit a 52-week high of Rs 44 on the NSE. A combined 556,653 shares have already changed hands on the counter in morning trades against an average 275,000 shares that were traded daily in past two weeks.