Private Equity

PE Fund Investments

Austria's RHI Magnesita to buy Dalmia Bharat's refractory biz for Rs.1,708-Cr

Press Release   Economic Times   BSE Filing  

Vienna, Austria-headquartered RHI Magnesita is acquiring the refractory business of Calcutta Stock Exchange listed, Dalmia Bharat Refractories Ltd (DBRL) - an associate company of BSE listed, Delhi-based Dalmia Bharat Limited - for about INR 1,708 crore (about 203 million euros or USD 208.5 million). The deal is being executed through a share swap with BSE listed, Mumbai-based RHI Magnesita India. RHI Magnesita India will acquire a 100% stake in Dalmia OCL Limited (DOCL) - a 100% DBRLsubsidiary into which all its refractory assets will be transferred - in exchange for 2.7 crore new shares in RHI Magnesita India Ltd. Based on the issuance price of RHI Magnesita India at INR 632.5029 per share, the deal has a value of about INR 1,708 crore. The acquisition will significantly increase RHI Magnesita's presence in the Indian refractory market, adding production capacities in the south and the west. Refractory is used by a wide range of industries, including steel, cement, non-ferrous metals and glass during the manufacturing process.