Chettinad to acquire stake in Anjani Portland

Chettinad Cement Corp Ltd has entered into a share purchase agreement to acquire up to 61.74 per cent stake in Hyderabad-based Anjani Portland Cement Ltd for INR700m from the promoters of the company.  The deal has been struck at INR 61.75/share.

It has also initiated an open offer as per SEBI takeover norms. Chettinad Cement has said that its agreement with promoters of Anjani Portland has a built-in flexibility to ensure that its holding is limited at 75 per cent, the maximum allowed for a firm to remain listed. This means the total deal value including the shares bought in the tender offer will aggregate to a maximum of INR 85 crore.

The acquisition will help Chettinad Cement, which is already present in Tamil Nadu and Karnataka, to enter the markets of Andhra Pradesh and nearby Odisha market.