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True North to acquire 75pct of Shree Digvijay Cement from Votorantim Cimentos

Infra News - Published on Fri, 16 Nov 2018

Image Source: Livemint
Mint reported that homegrown private equity fund True North said it will acquire a 75% stake in Shree Digvijay Cement Co. Ltd from Brazil-based Votorantim Cimentos, one of the largest global cement producers in terms of annual installed capacity. True North has made an open offer to acquire a 25.1% stake held by public shareholders for INR 23.33 apiece, aggregating to INR 83 crore, according to a stock exchange filing by Shree Digvijay Cement. Shree Digvijay Cement was set up in 1944. In 2012, Cimentos de Portugal, a Portuguese cement company and the then promoter of the Gujarat-based company, had transferred its stake to Votorantim as part of its global restructuring strategy.

Srikrishna Dwaram, partner, True North, said that “Votorantim Cimentos has contributed significantly to the strategic initiatives taken at Shree Digvijay Cement over the last few years. This has strengthened its competitive positioning and has greatly improved its operating and financial performance. We are very excited about this opportunity, with fresh investment and new thinking we can create a lot of value for all.”

Shree Digvijay Cement manufactures oil well cement and sulphate resisting portland cement at its plant in Jamnagar. It has a production capacity of 1.20 million tonnes per annum and employs about 300 people. For the financial year ended 31 March 2018, Shree Digvijay Cement reported net profit of INR 13 crore on revenues of INR 424.17 crore. In 2016-17, it had made losses of INR 14 crore on revenues of INR 319 crore.

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Posted By : Joykumar Irom on Fri, 16 Nov 2018
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