ICI Bank buys 6% stake in Andhra Cement

ICI Bank buys 6% stake in Andhra Cement
Published: 23 May 2006

ICICI Bank has finalised a deal with the GP Goenka group-promoted Andhra Cement (ACL) to pick up a 6% stake in the company for Rs 50 crore. The GP Goenka group is also investing another Rs 30 crore in the company as a part of ACL’s debt restructuring exercise.

Earlier, JP Morgan was looking at picking up a 14.95% stake in ACL for a consideration of Rs 75 crore. However, it backed out from the deal in the final stage due to a difference of opinion with ACL management.

"The board of directors of ACL will meet on Tuesday to consider a proposal of fund infusion from the ICICI Bank as well as the promoters as part of the rehabilitation scheme approved by the Appellate Authority for Industrial & Financial Reconstruction (AAIFR)," sources close to the development said.