GP Goenka may Sell Stake in Andhra Cements

GP Goenka may Sell Stake in Andhra Cements
Published: 31 October 2011

Kolkata-based industrialist GP Goenka is close to selling his controlling stake in debt-ridden Andhra Cements to the Dalmia group, which owns Dalmia Cement (Bharat)."Things are pretty close to finalisation and an announcement is likely soon," a person close to the deal said on condition of anonymity.

Goenka, chairman of the diversified Duncan Goenka group, holds 45% stake in the cement maker.

The size of the deal is not known yet, but industry players and analysts say any merger or acquisition in the sector should be valued between US$70 and $150/t of the cement maker’s capacity, besides technology, limestone reserves, proven capacity, market location and other asset liability considerations.