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Our Bureau

Aim to create world's largest calcining company

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Hyderabad Feb.8 Close on the recent acquisition of GLC Carbon (USA) Inc, Rain Commodities Ltd has initiated restructure moves, with the intention to create the world's largest calcining company with assets in India, Kuwait, the US and Argentina.

It aims at a combined market share of approximately 28 per cent of the total calcined petroleum coke (CPC) sales in the Western world. The company has informed the stock exchanges that its board, which met on February 7, 2007, has given its nod for the initiatives.

Accordingly, it would merge Rain Calcining Ltd (RCL) with it with effect from April 1, 2007, to integrate the CPC business of RCL with the CPC business of GLC Carbon (USA) Inc. Rain Commodities (USA) Inc, a wholly-owned subsidiary of the company, recently announced that it would acquire 73.56 per cent equity of GLC Carbon.

The company would develop the proposed greenfield CPC plant with co-generation facility at Visakhapatnam to provide assured and low cost power to the cement operations of Rain Industries Ltd, a wholly-owned subsidiary of the company from the existing co-generation Plant of RCL at Visakhapatnam and also to supply fuel grade petroleum coke for the cement operations.

It is also planned to transfer the cement business of Rain Industries as a Going Concern under a Scheme of Arrangement, with effect from October 1, 2006, transfer the CPC and power generation businesses of RCL to Rain Industries, post completion of the proposed merger of RCL with the company, with effect from April 1, 2007.

The company also plans to appoint financial and legal advisors for determining the share exchange ratio between equity shares of the company and that of Rain Calcining Ltd and draft the scheme of arrangement between RCL, RIL and the company.

All these decisions are subject to necessary approvals. The board has also decided to rescind its earlier decision to merge Rain Industries Ltd with the company, as notified on September 14, 2006, considering the subsequent developments with regard to proposed acquisition of GLC Carbon (USA) Inc and proposed merger of Rain Calcining Ltd with the company.

More Stories on : Mergers & Acquisitions | Coke & Metalurgical Coke

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