Goenka group will sell its 32.95% promoter’s stake in Andhra Cements, out of the 45% that it held in the company. Jaypee Development Corp will also subscribe to an additional fresh issue of 14.75 crore shares through preferential allotment.
These shares will take Jaypee’s stake in Andhra Cements to to 66.64%, Andhra Cements informed the exchanges.
The preferential allotment will be at INR12 (US$0.23) a share of INR10 each. At this price, Jaypee Development Corp will have to fork out INR234.74 crore (US$45m) to acquire 66.64%. Jaypee will launch an open offer for 7.63 crore shares of Andhra Cements at INR12 per share. Shares of Andhra Cements closed 4.97% up at INR10.98 on the BSE. Andhra Cements incurred a loss of INR35.50 crore on net sale of INR65.48 crore last year while two of its units have been non-operational since June 2010. Andhra Cements had accumulated losses of over INR200 crore in the past two years.