CRH reaches agreement to acquire cement business in India
12 August 2013
CRH plc, the international building materials group, announced today that its 50:50 Joint Venture in India, My Home Industries Limited (“MHIL”) has reached an agreement to acquire 100% of the shares of Sree Jayajothi Cements Limited (“SJCL”), a 3.2 million tonnes p.a. cement company based in South India for an Enterprise Value of INR14,000 million (€175 million). The investment will be financed from MHIL’s existing debt capacity and by equity inputs from the joint shareholders (€ 70 million). CRH’s equity interest will amount to approximately €35 million.
With the addition of SJCL, MHIL becomes the market leader in the Andhra Pradesh region of South India and benefits from complementary market coverage.
CRH in India: CRH entered the Indian market in 2008 with the acquisition of a 50% stake in MHIL, a cement business located in Andhra Pradesh in South India. MHIL has an annual cement capacity of 4.8 Mtpa from two plants and is the lowest cost producer and a leading player in its market.
|Contact CRH at Dublin 404 1000 (+353 1 404 1000) |
|Myles Lee ||Chief Executive |
|Maeve Carton ||Finance Director |
|Frank Heisterkamp ||Head of Investor Relations |
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