J K Cement accords in-principle approval to sign agreement with Toshali

J K Cement Ltd accorded in-principle approval to sign a share purchase agreement with Toshali Cements, the company said in a BSE filing on Monday.

The company will acquire management control and hold 100 per cent of the paid-up capital of Toshali.

In a regulatory filing, the company said, “The board of directors in its meeting held early today has accorded in-principle approval to sign and execute a share purchase agreement with the shareholders and also with Toshali Cements Private Limited (Toshali) for the acquisition of 100 per cent equity shareholding from all the existing shareholders of Toshali.”

The board of directors of the company has empowered the Committee of Directors to do the needful once the conditions precedent are achieved. Upon making of such an investment, Toshali will become a subsidiary of the company.

The total cost of acquisition is Rs 157 crore. The acquisition will help the company expand its footprint into the Eastern Region, the company said.

Toshali was incorporated in 2002 and at present has two manufacturing units.