Aditya Birla Group company Grasim Industries today said it will acquire one-third stake in Swedish specialty pulp company Domsjo Fabriker, which was recently bought by group firm Aditya Holding AB.
Grasim will invest Rs 280 crore in purchasing shares of Aditya Holding AB, which acquired the foreign firm through its 100%subsidiary -- Aditya Group AB.
"The Board of Directors of Grasim Industries Ltd at its meeting held today, approved the acquisition of a 33% stake in Domsjo Fabriker AB," the company said in a filing to the Bombay Stock Exchange.
The proposed acquisition will entail an investment of Swedish Kroner (SEK) 380 million (around Rs 280 crore) for subscribing to the equity shares of Aditya Holding AB, the ultimate holding company of Domsjo, it said.
"This investment is subject to required regulatory approvals. The company expects to complete the acquisition by the month end," it added.
Aditya Holding AB, which owned equally by Indonesia-based PT Indo-Bharat Rayon (IBR) and Thai Rayon Public Company Ltd (TRC), Thailand, last month acquired Domsjo through its wholly-owned subsidiary -- Aditya Group AB -- for a consideration of SEK 2.12 billion (about Rs 1,560 crore).
The filing further said Aditya Holding AB has invested SEK 1,140 million (around Rs 840 crore) in Aditya Group AB as equity. Besides, an interim funding of SEK 1,022 million (around Rs 753 crore) has been done as bank loans.
Grasim will invest in the equity of Aditya Holding AB at the same price at which IBR and TRC had recently invested, the filing said.