US-based private equity player Blackstone has finalised a deal to pick up around 53% stake in Sree Jayajothi Cements Ltd, a cement company in which Shriram Group acquired majority shareholding - for a consideration of Rs 550 crore, according to reports.
The company has bought the shares from Shriram Group, which held around 70% of the share in the cement company. According to reports, the Shriram Group has shortlisted Blackstone and Citi Venture Capital International (CVCI) to take a stake in the cement manufacturing firm, in which Blackstone won the opportunity.
According to sources, they (Blackstone) were to invest into the company, since Shriram Group was looking for a financial partner to take the company's growth forward.
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However, when contacted, T Shivaraman, managing director & CEO of Shriram EPC, said that it is a rumour and no transaction has happened.
It may be noted, Shriram EPC and group entities have acquired majority control, of around 68% (19% + 49%) in Sree Jayajothi Cement Ltd.
The stake was acquired by converting outstanding of Rs 352 Ccrore of SJCL's in to equity, besides converting Rs 94 crore into 19% equity. The other group company Spark Environmental Technology Ltd has picked up 49% stake in the company.
According to earlier reports, the company has been planning to expand capacity along with diversifying into other sectors.
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