Binani to sell 40% in cement arm to cut debt, expand
It seeks to raise capital to cut debt and expand cement capacities. Ernst & Young (E&Y), Braj Binani group's banker for the transaction, has held preliminary talks with the prospective investors, sources said. E&Y will soon approach the investors with a document detailing the acquisition opportunity, one person said. Sunil Sethy, Executive Vice-Chairman and Managing Director, Binani Industries said that the company has taken an in-principal approval from the board to divest its holding up to 40 per cent to financial investors on a structured basis to facilitate its liquidity position and to consolidate its growth plans. E&Y, among others, is assisting Binani by talking to prospective financial investors. The divestment is on a structured and phased manner and the firm hopes to complete it within the next few weeks, said Sunil Sethy. The potential investors may include Abu Dhabi Investment Authority and Qatar Investment Authority. The company, with a capacity of 11.25 mtpa, has a 2 mtpa grinding unit in Dubai's Jebel Ali Industrial Area and wants to scale up its capacities in China and Dubai. Its expansion plans include increasing domestic capacity by 3 mtpa and plants are located in Rajasthan.
Contact: Binani Cement.
Tel: 91 141 4134300 / 4124 300.