Economy & Market
Three foreign firms keen to buy Digvijay Cement's state
Two Brazilian and one Austrian cement company have made an open offer to acquire 26 per cent stake in Shree Digvijay Cement. The offer price is Rs 10.94 a share. The company's shares on BSE were down two per cent at Rs 10.68 on June 26.
The mandatory open offer was triggered by change in ownership of promoter.
The Portuguese cement company, Cimentos de Portugal (Cimpor), which owns 73.63 per cent in Shree Digvijay Cements, was acquired by a Brazilian industrial conglomerate Camargo Correa in a deal valued at €2.5 billion (about Rs 17,700 crore).
Shree Digvijay stake will now be transferred to the new promoters.
On June 26, Camargo Correa announced that it had completed the takeover of Cimpor. Camargo Correa, which was already the single largest shareholder in Cimpor with a 33 per cent stake, will now own 94.8 per cent.
Three companies - Brazil-based Votorantim Cimentos SA, Camargo Correa SA and InterCement Austria Holding GmbH - will make the open offer as they are acting in concert.
The Brazilian company has taken advantage of the prevailing economic crisis in the Euro Zone to snap up a good bargain. Though the Euro crisis may take some time to subside, the deal has given Camargo a foothold in the Indian cement market, which has huge potential to grow.