)
Sagar Cements Limited has agreed to sell its entire 47% stake in the joint-venture Vicat Sagar Cement Private Limited to its French partner Vicat Group for Rs 435 crore. The JV was formed in June 2008 with an objective of setting up a 5.5 million tonne cement plant in Gulbarga in Karnataka. In the first phase the joint venture company had set up a 2.75 million tonne capacity plant, which commenced production in January 2013. Sagar's contribution for the first phase was Rs 86 crore for its 47% stake in the joint venture, according to the company.
The board of directors on Tuesday approved the sale of its entire stake of 65.23 million shares held in its joint venture to Parficim S A S, France, an affiliate of Vicat S A, France for the above price.
“This transaction will enable both Vicat and Sagar to better focus on their own strengths and strategies,” said Srikanth Reddy, Executive Director, Sagar Cements in a press release.
For Complete Report Read: Sagar Cements to sell its entire stake in Gulbarga plant to Vicat for Rs 435 cr
