Two Brazilian and an Austrian cement companies have together made an open offer for acquiring 3.67 crore shares of Shree Digvijay Cements Ltd, for a price of Rs 10.94 a share.
On the BSE, the Shree Digvijay share is currently quoting at Rs 10.78.
The offer, managed by Kotak Mahindra Capital Company, has been triggered by an acquisition of the Portuguese cement company, Cimentos de Portugal (Cimpor), which holds 73.63 per cent in Shree Digvijay Cements.
Thanks to a Cimpor-centric acquisition-cum-asset swap deal abroad, Votorantim Cimentos of Brazil will come to hold 73.63 per cent in Shree Digvijay Cement. The whole process was triggered by InterCement Austria making a bid for Cimpor, in which Votarantim and another Brazilian company called Camargo Correa held 21.40 per cent and 33.25 per cent stakes respectively.
The voluntary tender offer issued in Portugal by InterCement Austria for Cimpor on March 30 this year, was followed by a "restructuring agreement" based on which assets held by Cimpor and the two Brazilian companies are to be restructured and distributed amongst the Brazilian companies by way of asset swaps.
In the process, 73.63 per cent of Shree Digvijay Cement will go to Votorantim Cimentos, “thereby resulting in a change in control” of Shree Digvijay.
Shree Digvijay was founded in 1949 at Sikka, near Jamnagar, Gujarat, and today runs a 1.3 million-tonne plant. In 2008, it was acquired by Cimpor.
In 2010-11, the company achieved a turnover of Rs 333 crore, on which it made a profit of Rs 9.45 crore.