Moneycontrol was the first to report on the Group’s plans to sell its cement assets on June 25, 2019
Emami Group said it has entered into a binding agreement with Nuvoco Vistas Corporation, part of the Nirma Group, for the divestment of its entire equity stake in Emami Cement for an enterprise value of Rs 5,500 crore, the company said in a press release.
Moneycontrol was the first to report on the Group’s plans to sell its cement assets on June 25, 2019.
Emami Cement currently operates three manufacturing plants at Risda in Madhya Pradesh, Panagrah in West Bengal and Bhabua in Bihar, having a combined capacity of of around 8.3 million tonne per annum.
Commenting on the deal, Manish Goenka, Director, Emami Group, said, “This transaction is an important step in our Group’s stated objective of becoming debt-free and with this transaction we will substantially achieve this objective. We are very proud of Emami Cement’s achievements in a short span of time and strongly believe that in Nuvoco, we have found the right acquirer who will be able to develop the business further in the interest of all the stakeholders.”
The transaction is subject to the customary approvals including from the Competition Commission and is expected to be consummated in the next three-to-four months.
For Emami Group, Shardul Amarchand Mangaldas acted as the legal advisor, Deloitte Touche Tohamatsu India acted as the financial diligence advisor and Arpwood Capital acted as financial advisor. Khaitan and Co acted as the legal advisor for Nuvoco Vistas.Exclusive offer: Use code "BUDGET2020" and get Moneycontrol Pro's Subscription for as little as Rs 333/- for the first year.
