Hyderabad-based Sagar Cements has received Board's in-principle approval to acquire Bangalore-based BMM Cement for Rs 540 crore.
In a communique to the stock exchanges, Sagar Cements said the Board "has accorded its 'in principle' approval to a proposal for acquiring 100 per cent stake in BMM Cement Ltd, having an enterprise value of around Rs 540 crore".
BBM owns a million tonne per annum cement plant with a captive power unit of 25 MW capacity near Tadipatri, Anantapur district, Andhra Pradesh.
Sagar Cements said the Board has also authorised senior officials to negotiate and finalise the terms and conditions of the proposed acquisition, including the acquisition price.
The Board would meet next on October 17 for considering to give its final approval.
Sagar Cements now has 2.35 mtpa capacity.
