JSW Cement to buy majority stake in Shiva Cement

JSW Cement Ltd, part of the Sajjan Jindal-led JSW Group, has made an open offer to acquire a 32 per cent stake in Shiva Cement Ltd from public shareholders as part of a plan to buy a controlling stake in the Odisha-based company.

JSW Cement made the open offer at ` 14 per share of Shiva Cement, totalling as much as ` 87.36 crore ($13 million). The offer comes after the cement maker agreed to buy a 35.6 per cent stake from Shiva Cement’s promoters for ` 97.24 crore.

In a BSE filing, JM Financial Institutional Securities Ltd, manager to the open offer, said that JSW Cement together with Sun Investments Pvt. Ltd and Reynold Traders Pvt. Ltd has made an open offer to the public equity shareholders of Shiva Cement to acquire up to 62.4 million fully paid-up equity shares, constituting 32 per cent of the total fully diluted voting equity share capital at a price of `14 per share aggregating to
` 87.36 crore in cash.

Incorporated in 1985, Shiva Cement started its first commercial production in 1986. It has an integrated plant located near Rourkela in Odisha’s Sundergarh district with an annual production of close to 200,000 tonnes per annum, which is being expanded to 1 million tonnes per annum, according to its website.

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