Sagar Cements Ltd will acquire BMM Cements Ltd, which has a one million tonne capacity plant at Gudipadu near Tadipatri in Anantapur district of Andhra Pradesh.
The board of directors of the Hyderabad-based company at its meeting held on Thursday gave in-principle approval for the acquisition, according to a release issued here on Friday.
The company, which has an enterprise value of Rs 540 crore, has limestone reserves of around 155 million tonnes, besides a captive power plant of 25 MW.
Sagar Cements’ scrip lost 4.41 per cent on the BSE on Friday and was trading at Rs 325 in the afternoon session.