Shriram EPC confirmed it would buy a 68 per cent stake in Sree Jayajothi Cements Ltd, along with its group companies, reports the Business Standard of India. The acquisition will be carried out by Shriram EPC and a special purpose vehicle floated by other Shriram Group companies.
Last month the paper reported that the Shriram Group was planning to acquire a stake in the Andhra Pradesh-based cement producer by converting its dues into equity.
Speaking to Business Standard, Shriram EPC managing director and CEO, T Shivaraman, said the company’s investment in equity shares would be up to a maximum of 19 per cent shareholding. The Spark Environmental Technology (SPV) will convert outstanding dues into equity shares and will in turn pick up another 49 per cent stake.
The SPV would include other Shriram Group companies, he said. The structure will allow to rope in potential investors, including strategic investors, to participate in the cement venture, both direct and indirectly, which would allow greater flexibility in structuring the transactions.
