Displaying items by tag: Acquisition
Prism Cement acquires 50% stake in Coral Gold Tiles
06 November 2015India: Prism Cement has acquired a 50% stake in Coral Gold Tiles Pvt Ltd. It did not disclose the value of the deal. The acquisition will increase Prism Cement's tile business capacity to 58Mm2/yr from 54.5Mm2/yr.
West China Cement to buy Yaowangshan Cement for US$121m
02 November 2015China: West China Cement has agreed to acquire the entire equity interest of Tongchuan Yaowangshan Ecological Cement Co Ltd as well as shareholder's loan of US$121m. The Yaowangshan cement plant in Yaowangshan, Tongchuan, Shaanxi has 2.2Mt/yr of cement production capacity.
China Conch Venture and Red Day Limited, which is owned by West China Cement's Non-executive Director Ma Zhaoyang, agreed to inject US$14.2m and US$4.73m into Xi'an Yaobai Environmental Technology Engineering Co Ltd. Upon completion, Yaobai Environmental will be 60% owned by Conch Venture, 20% by Red Day and 20% by West China Cement.
West China Cement expects to record a US$63,096 loss as a result of the transactions. The parties agreed to develop Yaobai Environmental into the only platform for the treatment of dangerous and hazardous waste for the parties within China. West China Cement believes that the investments from Conch Venture and Red Day, which will provide additional financial resources to Yaobai Environmental, is an important step towards this goal and paves the way for further collaboration among the parties.
Egypt: ASEC Cement, a subsidiary of Egypt's Qalaa Holdings, has announced plans to sell its stakes in ASEC Minya and ASEC Ready Mix to Misr Qena Cement for US$125m. The respective stakes are 46.5% and 55%. The deal is expected close on or before 20 November 2015.
Jaypee Group revives talks with JSW to sell cement portfolio
26 October 2015India: To improve its finances, Jaypee Group has revived its negotiations with JSW to sell its entire 20 – 22Mt/yr cement portfolio. The top officials, including Manoj Gaur, Executive Chairman and CEO of Jaypee Group, met Sajjan Jindal, Chairman on JSW Steel, to discuss the acquisition. Jaypee Group has an outstanding debt of around US$11.6bn. The talks are still at early stage.
HeidelbergCement reduces refinancing needs by further Euro500m
23 October 2015Germany: HeidelbergCement has taken another step to optimise the financing of the Italcementi acquisition. The volume of the bridge financing could be reduced by a further Euro500m from Euro3.8bn to Euro3.3bn. The refinancing needs in the bond market declined by Euro500m to around Euro2.5bn, correspondingly.
Decisive for the reduction of the financing volume was that some of Italcementi's creditor banks have agreed to waive their change of control clauses. As a consequence, HeidelbergCement will have access to additional credit lines totalling Euro500m on a long-term basis also after the takeover. Therefore, refinancing of these credit lines after the acquisition is no longer necessary and the volume of the bridge financing could be reduced accordingly. As already communicated in the announcement of the Italcementi acquisition, the bridge financing should be refinanced by free cash flow, the sale of production sites and the issuance of bonds. The reduction in the volume of bridge financing thus also reduces the need for refinancing in the bond market by the same amount.
Reliance Infrastructure to sell cement business to cut debt
08 October 2015India: Reliance Infrastructure plans to sell its cement business as part of plans to cut debt through the sale of non-core assets.
As many as 10 global companies have been sounded for a 100% stake of Reliance Cement, a wholly-owned subsidiary of Reliance Infrastructure. These include CRH, Cemex, HeidelbergCement, GE, Blackstone, Carlyle and KKR. Local companies JK Cement and Prism Cement may also be interested. Reliance Group has appointed Morgan Stanley as banker to scout for buyers for Reliance Cement.
The sale of the cement business is aimed at reducing debt by selling non-core assets. Reliance Infra's debt stood at around US$3.86bn on 31 March 2015. Reliance believes that the sale will help reduce its debt by 20 – 25%. It is looking at a valuation of US$769 – 922m for Reliance Cement, which has a cement production capacity of 5.6Mt/yr.
Reliance Cement started operations in 2007 and has plants in Maihar in Madhya Pradesh (2.8Mt/yr), Kundanganj in Uttar Pradesh (2.2Mt/yr) and Butibori in Maharashtra (500,000t/yr). It is also developing a 5Mt/yr greenfield plant at Wani in Maharashtra.
Lafarge Nigeria unit acquires United Cement
06 October 2015Nigeria: An affiliate of Lafarge Africa, Nigerian Cement Holdings (NCH), has completed a 100% acquisition of Nigeria's third-largest cement manufacturer United Cement Company of Nigeria (UNICEM). Lafarge did not disclose the purchase price. NCH owned 70% equity in UNICEM before agreeing to the deal in November 2014 to buy the remaining 30% from Flour Mills. UNICEM cement plant in Cross River has a production capacity of 2.5Mt/yr and is undergoing an expansion to 5Mt/yr, to be completed in 2016.
Egypt: Misr Qena Cement has denied that it has acquired a 46% stake of ASEC Cement Company and a 55% stake of ASEC Concrete, which has been published in local newspapers. Misr Cement said that the published news was based on an assumption and that it would announce the deal when it was finalised.
Brazilian cement firms pay up over Indian acquisition infringements
30 September 2015India: Brazilian cement major Votarantim Cimentos, InterCement Austria Holding and Camargo Corrêa have settled a case with the Securities and Exchange Board of India (SEBI) for alleged violation of takeover protocols regarding Shree Digvijay Cement. They have paid over US$115,000 in settlement charges.
SEBI had initiated adjudication proceedings against the three companies over the violation of provisions Substantial Acquisition of Shares and Takeovers (SAST) regulations. It was alleged that the entities failed to comply with certain provisions of the SAST regulations while making an open offer for acquisition of 36.7 million shares, representing a 26% stake in Shree Digvijay Cement.
Bedeschi purchases US unit from Dearborn
25 September 2015Italy/US: Bedeschi SPA of Padua, Italy has announced the recent asset purchase of Bedeschi Mid-West Conveyor LLC (BMWC) from Dearborn Mid-West Conveyor Co, a leading provider of turnkey bulk material handling systems for the utility, mining, cement, fertilizer, refinery and marine terminal markets.
Founded in 1947 BMWC is located in Lenexa, Kansas, from where it designs, fabricates and installs bulk materials handling systems.
Rino Bedeschi, Managing Director of the Bedeschi Group said, "We are excited about BMWC becoming part of the Bedeschi Team. Having been in business for 107 years, we are sure the merger will serve our clients with a wider range of products and services with broader organisational capabilities for future domestic and international projects."