Dalmia to merge its two listed cement companies

Dalmia to merge its two listed cement companies

Dalmia Group may merge its two listed cement companies Dalmia Bharat and OCL India, due to signs of recovery in the Indian cement sector driven on infrastructure spending outlined in the most recent Budget.

Dalmia´s restructuring plan will also include merging Dalmia Bharat Enterprises with itself. Industry sources further noted that private equity firm Kohlberg Kravis Roberts (KKR) holds a 14.5 per cent stake in Dalmia Bharat Enterprises and will therefore own a small share in the merged listed entity. Dalmia Bharat currently holds a 48 per cent stake in OCL India; the companies have a combined cement capacity of approximately 20 million tonnes. Following the merger, the swap ratio is set to favour OCL India´s shareholders.

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