New Delhi : Dalmia Bharat said it has inked a pact with KKR to acquire the global private equity giant’s 15% stake in its subsidiary Dalmia Cement Bharat Ltd for over Rs 1,218 crore in a cash and stock deal, reports PTI.
The deal has 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 % stake in DCBL in return of KKR getting 8.5 % stake in DBL as well as Rs 600 crore in cash,” Dalmia Bharat Group Managing Director Punit Dalmia 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 added.
The stock close down by 0.94 % at Rs 780.70. “It has been a great partnership in the five years. We have been benefited tremendously from KKR’s network, strategic expertise and experience in value creation. Our capacity increased from 9 million tonnes (MT) to 25 MT,” Dalmia said.
