Financial Daily from THE HINDU group of publications
Tuesday, Jun 17, 2003
Financial Daily from THE HINDU group of publications Tuesday, Jun 17, 2003 |
|
|
|
|
|
Home Page
-
Cement Corporate - Mergers & Acquisitions L&T: Grasim strikes deal with FIs? Dinesh Narayanan
MUMBAI, June 16 LARSEN & Toubro raider Grasim Industries is understood to have struck a tentative deal with financial institutions, which hold a vital 40 per cent equity of L&T, to vertically split the engineering and cement major and acquire their holding in the cement division at Rs 171 per share. Sources said a final decision could be expected tomorrow as the boards of directors of both the companies are scheduled to meet separately to discuss the issue. The L&T share closed at Rs 236.10, sharply up from its previous close of Rs 228. According to the sources, the 16.5 million tonne cement manufacturing capacity of L&T has been valued at roughly $76 per tonne. However, the AV Birla group has stuck to its initial valuation of Rs 292.50 per share for L&T as a whole. It had paid Rs 306.60 per share to Reliance Industries for an equity holding of nearly 10.5 per cent in the company. The Birlas had then valued the engineering division, if it were to be demerged, at Rs 162.50 per share. As per the current proposal, however, the division is valued at only Rs 121.50 per share, the sources said. At the rate of Rs 171 per share, the Birlas would have to pay about Rs 2,500 crore to increase their stake in the cement division to about 75 per cent.
Article E-Mail :: Comment :: Syndication
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | Home |
Copyright © 2003, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|