Binani Cement set to buy African firm

Binani Cement set to buy African firm
Published: 24 June 2008

Binani Cement is close to acquiring an African cement company for around US$100m.
The company will be raising US$125m to fund the acquisition which is likely to be sealed by the end of current calendar year, according to sources.
It was learnt that the board cleared the acquisition plan in Kolkata on Monday.
Binani has already acquired a 70% stake in Chinese cement manufacturer Shandong Binani Rongan Cement, which is licensed to produce 2.2Mt of cement.
When contacted, Binani Group deputy managing director Vinod Juneja told ET, "We are analysing buyout options in South Africa but nothing has been finalised yet."
Juneja accepted that the board has agreed to raise funds worth US$125m and that merchant bankers are working on fund raising and overseas acquisition.
"The company will inform stock exchanges at the proper time if any arrangements are finalised," Juneja added. The company is increasing focus overseas market and likely to take the inorganic route, said an analyst tracking Binani.
Moreover, it is setting up two grinding units overseas - one in Mauritius and the other one either in the Ivory Coast, Ghana or Nigeria.
Meanwhile, Binani Cement is ready to foray into newer markets in North and West India in next quarter according to industry sources. Binani has already started working on a blueprint to foray into Maharashtra, Punjab, Jammu & Kashmir and Himachal Pradesh markets.
The company is in talks with different dealers in Maharashtra for keeping cement stocks, sources said, adding that Binani will issue advertisement in papers for warehouses, contract trucks for loading etc in a few weeks.