CRH & MHIL JV acquires SJCL for Rs 14,000 million

CRH & MHIL JV acquires SJCL for Rs 14,000 million

CRH plc, the international building materials group which entered the Indian market in 2008 with the acquisition of a 50 per cent stake in MHIL, a cement business, today announced that its 50:50 Joint Venture in India, My Home Industries Limited (MHIL" has reached an agreement to acquire hundred per cent of the shares of Sree Jayajothi Cements Limited (SJC"), a 3.2 million tonnes p.a. cement company based in South India for an enterprise value of Rs 14,000 million (
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175 million). The investment will be financed from MHIL's existing debt capacity and by equity inputs from the joint shareholders (
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70 million). CRH's equity interest will amount to approximately
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35 million. With the addition of SJCL, MHIL becomes the market leader in the Andhra Pradesh and can benefits from complimentary market coverage.

CRH entered the Indian market in 2008 with the acquisition of a 50 per cent stake in MHIL, a cement business located in Andhra Pradesh in South India. MHIL has an annual cement capacity of 4.8 Mtpa from two plants and is the lowest cost producer and a leading player in its market.

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