KKR Mauritius Cement Investments acquires 8.5 per cent in Dalmia Bharat
KKR Mauritius Cement Investments Ltd has acquired 8.5 per cent stake in Dalmia Bharat Ltd, according to PTI report.
The development soon follows Dalmia Bharat getting fair trade regulator CCI’s approval to acquire 15 per cent stake in its subsidiary Dalmia Cement Bharat from private equity giant KKR for over Rs 1,218 crore in a cash and stock deal.
In a filing to the BSE, Dalmia Bharat said KKR Mauritius Cements Investments acquired 8.4503 per cent stake, or 75,00,000 shares of Dalmia Bharat through preferential allotment on March 9.
Dalmia Bharat, in January, had announced signing of a pact with KKR to acquire the global private equity giant’s 15 per cent stake in its subsidiary Dalmia Cement Bharat Ltd for over Rs 1,218 crore in a cash and stock deal.
The deal earned the private equity player a return of 2.4 times on its investment of Rs 500 crore that it made in September 2010.
“Dalmia Bharat Ltd (DBL) signed a definitive agreement with KKR, under which it will acquire KKR’s 15 per cent stake in DCBL in return of KKR getting 8.5 per cent stake in DBL as well as Rs 600 crore in cash,” Dalmia Bharat Group Managing Director Punit Dalmia had earlier told PTI.
This will not only simplify DCBL’s shareholding structure, but will also make the cement maker a wholly-owned subsidiary of DBL, he had added.
Dalmia Bharat had earlier informed the bourses that it would make a preferential issue of 7.5 million shares to KKR at Rs 825 a share and pay KKR Rs 600 crore (USD 89 million) in cash for its around 15 per cent stake (about 3.79 crore shares) in DCBL. The DBL board also approved the deal.