Bajorias To Buy Out Cookson From Ifl

The Bajorias of Indo Flogates Ltd (IFL) have decided to buy back 30 per cent stake in the company held by the UK-based Cookson Group Plc.

The $3.5 billion Cookson group had automatically become stakeholders in IFL in February, 1998 when the Hinckley family of the UK, the original joint venture partners of Bajorias in IFL, sold its businesses to the company.

`As per the terms of the shareholders' agreement, we will buy back the entire 30 per cent stake (formerly held by Hinckleys) from Cookson,' says Pradeep Bajoria, director & chief executive, IFL. Currently, the Bajorias have 45 per cent holding in the company, and the buyback will raise their stake to 75 per cent.

 

IFL is also scouting for a new joint venture partner to facilitate access to technology, particularly in view of the parting of ways with Cookson.

`Talks with a foreign refractory major are at an advanced stage,' Bajoria said. The new partner will be offered the 30 per cent stake bought from Cookson, he added.

The Cookson group already has a presence in the country through Vesuvius India Ltd, a subsidiary of Vesuvius group of the UK, which is the holding company for the Cookson group Plc.

Till IFL finds a new partner, Cookson will continue to honour all technology-related agreements signed between IFL and Hinckley.

The refractories business of the Bajorias, consisting of IFL and its subsidiaries, KSR India International Ltd and IFGL Refractories Ltd (IRL), posted total sales of Rs 52 crore for the year ended 1997-98.

While IFL posted net sales of Rs 25 crore, IRL posted a turnover of Rs 26 crore. The company's international distribution arm, KSR India, chipped in with a sales of Rs one crore.

IFL's net sales for the previous fiscal dipped to Rs 25.51 crore from Rs 27.28 crore. The company posted a net profit of Rs 24.8 lakh as against Rs 37 lakh recorded in 1996-97. The board has recommended a dividend of five per cent.