ICL Financial Services, a wholly-owned subsidiary of India Cements is increasing its stake in Indo Zinc by an additional 39.84 per ce-nt. As a result, ICLFSL’s st-ake in Indo Zinc will incre-ase to nearly 53 per cent, since it already held a 13 per cent stake in the latter.
The acquisition of this additional stake will set in the process of complying with the relevant provisions of Sebi (substantial acquisition of shares and take-overs) regulations, and will go for an open offer to acquire a minimum of another 20 per cent.
ICLFSL has entered into a share purchase agreement on July 19 with the promoters of Indo Zinc for purchase of a little more than 17.87 lakh equity sha-res of Rs 10 each fully paid up in Indo Zinc, constituting 39.84 per cent of its paid up equity share capital, India Cements infor-med BSE on Monday.
According to an official in India Cements, Indo Zinc was more a shell company with little or no major operations. However, it had a mining license for mining limestone, a major ingredient for manufacturing cement, in Rajasthan.
Since, the mining lice-nse cannot be transferred, ICLFSL preferred to acquire the company.
Incidentally, India Cements, as part of its expansion plans and roadmap for a larger presence across the country, had announced its plans to establish a 1.5 million tonne per annum capacity cement plant in Rajasthan. However, it had slowed down its push over the past few months.
Now, India Cements is likely to establish its new plant in Rajasthan through Indo Zinc.
In addition, it may later prefer to merge Indo Zinc with ICLFSL. It is also op-en to acquire the entire sta-ke of both the original promoters and also that of the public, if available.
Source: My Digital FC