JSW Cement Ltd is to buy the entire promoter holding in cement maker Shiva Cement Ltd and launch an open offer to acquire another 32 per cent from the company's public equity shareholders.
Odisha-based Shiva Cement confirmed that it has agreed to sell its 35.6 per cent promoter holding to JSW Cement at INR14/share (US$0.20/share).
In a separate BSE filing, JM Financial Institutional Securities Ltd, manager to the offer, said that JSW Cement, together with Sun Investments Pvt Ltd and Reynold Traders Pvt Ltd, has made an open offer to the public equity shareholders of Shiva Cement to acquire up to 62.4m fully paid-up equity shares, constituting 32 per cent of the total fully diluted voting equity share capital at a price of INR873.6m (US$12.79m).
Last year the Indian cement sector saw a number of assets changing hands, with LafargeHolcim selling its Indian assets to Nirma in July for approximately US$1.4bn and UltraTech Cement purchasing Jaiprakash Associates's 17.2Mta capacity for an enterprise value of INR16.89bn.
