Sagar Cement completes sale of joint-venture stake

Sagar Cements has completed the sale of its stake in Vicat Sagar Cement, therefore formalising its exit from the joint-venture company.

In mid-July an agreement had been reached whereby Sagar Cements  would sell its entire 47 per cent stake in the collaboration to Vicat for INR66.86/share (US$1.1). The company had earlier obtained approval from shareholders through postal ballot for the sale of the investment held in Vicat Sagar Cement.

The joint venture was set up in 2008 and the 2.75Mta Gulbarga plant in Karnataka was launched in December 2012. Following sale of Sagar Cements' stake, Vicat now assumes 100 per cent control of the company.

Sagar Cements also owns a similar capacity plant in Telangana, southern India. It plans to use the proceeds of the sale to purchase capital equipment for its existing works and to fund growth organically and through M&A activity.