Mumbai: Krishna Holdings, a subsidiary of UltraTech Nathdwara Cement, will sell its entire 92.5 per cent stake in China’s Shandong Binani Rongan Cement for round $129 million.
UltraTech Nathdwara Cement is a subsidiary of the UltraTech Cement.
In a regulatory submitting on Tuesday, UltraTech mentioned, “Krishna Holdings, incorporated in Singapore and a subsidiary of the company’s wholly-owned subsidiary UltraTech Nathdwara Cement, has informed that it has entered into a binding agreement for divesting its entire shareholding of 92.5 per cent in Shandong Binani Rongan Cement.”
“Krishna Holdings will divest its entire shareholding at an enterprise value of RMB 845 million +/- working capital adjustments on closing, equivalent to $120 million (approx), subject to customary closing conditions and regulatory approvals in compliance with the local laws,” it mentioned.
Shandong Binani Rongan Cement was arrange in 2007 as a 70:30 three way partnership between India’s Binani Cement and China’s Rizhao Rongan Construction Materials Co. In 2018, UltraTech acquired Binani Cement by the insolvency route and the China-based three way partnership turned part of UltraTech’s portfolio.
UltraTech’s exit from the Chinese firm comes at a time when refrain for boycott of Chinese merchandise and growing Indian provide chain is rising amid the latest border tussle with the northern neighbour in which 20 Indian troopers have been martyred.