Board Of Orient Refractories Approves Merger With RHI India & RHI Clasil
The Board of Directors of Orient Refractories Limited (“Orient Refractories”), RHI India Private Limited (“RHI India”) and RHI Clasil Private Limited (“RHI Clasil”), at their respective meetings approved the proposal to merge RHI India and RHI Clasil with Orient Refractories, pursuant to a composite scheme of amalgamation (the “Scheme”). All three companies are part of the RHI Magnesita group, the leading global supplier of high-grade refractory products, systems and services. Following completion of the Scheme and subject to receipt of necessary approvals, Orient Refractories is proposed to be renamed to RHI Magnesita India Limited.
The key objective of the proposed Scheme is to combine the strengths and competencies of all three operating companies in India under one strong listed company that is well positioned to leverage future growth opportunities and enhance shareholder value.
The proposed Scheme is also in line with RHI Magnesita’s strategy to consolidate its Indian operations as it considers India to be one of its key markets and strongly believes that the country and the Asia region have significant growth potential for its refractory products and services. Presently, RHI Magnesita has three operating companies in India: (a) Orient Refractories, a leading manufacturer and supplier of special refractory products, systems and services for the steel industry. The company is 69.6% owned by RHI Magnesita and is listed on the Indian stock exchanges, (b) RHI India, a wholly-owned subsidiary, which is the Indian sales company of the RHI Magnesita group, offering a full range of refractories and related services sourced from various RHI Magnesita group entities to Indian customers, and (c) RHI Clasil, a manufacturer and supplier of mainly Alumina based refractories for the steel and cement industries, which is 53.7% owned by RHI Magnesita.