ICL Financial Services Ltd, a subsidiary of India Cements Ltd, has acquired a 53 per cent stake in Indo Zinc Ltd for about Rs 5.3 crore.
According to the India Cements sources, Indo Zinc holds limestone mining leases in Rajasthan, where the former has announced its intention to set up a 1.5-million tonnes a year cement plant that is expected to go on stream in mid-2010.
This cement plant will now be put up through Indo Zinc, which India Cements plans to merge with itself at a later date. India Cements decided to acquire Indo Zinc as mining leases cannot be transferred.
Indo Zinc, the sources said, had put up some civil structures but did not do anything more to put up the cement plant. Indo Zinc’s authorised share capital was at Rs 4.5 crore.
Indo Zinc’s registered office is in Mumbai and its Managing Director is Mr Sanjay Agarwal, according to company information on the BSE.
ICL Financial Services would make an open offer to acquire a minimum 20 per cent stake. India Cements, the stock exchange announcement said, was a “person acting in concert” with ICL Financial Services.
Source: The Hindu Businessline