Ramco Cemets To Acquire Clinker Grinding Unit From RIL
Ramco Cements Limited has entered into an agreement with Ramco Industries Limited (RIL), a Related Party, for the acquisition of their clinker grinding unit situated at Kharagpur, West Bengal. Detailed information is annexed below:
|1||Name of the Target entity, details in brief such as size, turnover, etc.||Clinker Grinding Unit at Kharagpur, West Bengal (Target Entity) of Ramco Industries Limited (RIL) having a capacity of 18,000 tonnes per month.|
|2||Whether the acquisition would fall within related party transaction(s) and whether the promoter/promoter group/group companies have any interest in the entity being acquired? If yes, nature of interest and details thereof and whether the same is done at "arms length";|
It is a related party transaction since the seller namely RIL is an Associate Company of The Ramco Cements Limited (TRCL).
The shareholding of TRCL and the Directors of TRCL in RIL is as follows:
a) TRCL holds 1,33,72,500(15.43%) shares in RIL
b) Shri.P.R.Venketrama Raja, Chairman & Managing Director holds 62,20,655(7.18%) shares in RIL
The transaction is done at arm's length basis.
|3||Industry to which the entity beingacquired belongs;||Grinding Unit|
|4||Objects and effects of acquisition(including but not limited to, the disclosure of reasons for the acquisition of target entity, if its business is outside the main line of business of the listed entity);||To expand the Company's market in West Bengal. The proposal involves the acquisition of land, totalling an area of 3.780 decimals together with the structures and machinery erected thereon.|
|5||Brief details of any governmental or regulatory approvals required for the acquisition;||RIL had obtained necessary NOC No.270- C1/D/AND/GEN-INC/20/13 dated 19.12.2017 from Government of West Bengal, Department of Industry Commerce and Enterprises|
|6||The indicative time period for completion of the acquisition||Within 30 days from the date of execution of agreement, which is 5th March 2018.|
|7||Nature of consideration — whether cash consideration or share swap and details of the same;||Cash Consideration|
|8||Cost of acquisition or the price at which the shares are acquired;||Rs.17 crores|
|9||(i) Percentage of shareholding/controlacquired and/or number of shares acquired;||Not applicable|
|10||(j) Brief background about the entity acquired in terms of products/line of business acquired, date of incorporation, history of last 3 years turnover, the country in which the acquired entity has a presence and any other significant information (in brief)|
Clinker Grinding Unit at Kharagpur, West Bengal of RIL.
Capacity - 18,000 tonnes per month. The line of Business - Clinker Grinding
The turnover of the unit:
2014-15 - Rs.5853.36 lakhs
2015-16 - Rs.4129.44 lakhs
2016-17 - Rs.3047.48 lakhs