Emami Group on Thursday announced that it has entered into a binding agreement with Nuvoco Vistas Corporation Limited, part of Nirma Group, for selling of its 100% equity stake in Emami Cement Limited for an enterprise value of Rs 5,500 crore.
Emami Cement operates one integrated cement plant and three grinding units with a total cement grinding capacity of around 8.3 million tonnes per annum.
ET was the first to report the development on January 20.
Manish Goenka, Director, Emami Group said this transaction is an important step in the group’s stated objective of becoming debt-free and it will substantially achieve this objective now.
“… we strongly believe that in Nuvoco, we have found the right acquirer who will be able to develop the business further in the interest of all the stakeholders,” he said.
Aditya Agarwal, director, Emami Group said Emami Cement has successfully established very strong brand equity in the market for its highest standard of operation and high-quality products, helping the group to get a good value. “We strongly believe that the Nuvoco and Nirma Group will continue from here and strengthen the business further.”
The transaction is subject to the customary approvals including from the Competition Commission and is expected to be completed in the next 3-4 months.
Shardul Amarchand Mangaldas acted as the legal advisor, Deloitte Touche Tohmatsu India LLP acted as the financial diligence advisor and Arpwood Capital acted as the financial advisor.
Source: Economic Times