Sagar gets Board nod for BMM acquisition

The board of Sagar Cements has given approval in-principle for the acquisition of a 100 per cent equity stake in BMM Cements Ltd as the company seeks to expand its presence in southern India.

The deal involves the acquisition of a 1Mta cement plant and a 25MW captive thermal power plant in Gudipadu, near Tadipatri Anantapur district in the state of Andhra Pradesh.

Successful completion of the transaction is subject to further negotiation to arrive at the acquisition price and other terms and conditions.

Commenting on the in-principle approval, Executive Director Sreekanth Reddy said, "The proposed acquisition of BMM Cements comes at an opportune time wherein the demand environment and pricing in our region of operations looks encouraging. The two companies are wholly complementary geographically with considerable potential for synergies. We intend to continue to drive growth and explore both inorganic and organic opportunities that will enhance long-term stakeholder value."

Completion of the acquisition will raise Sagar Cements' total cement capacity to 3.75Mt from its existing capacity of 2.75Mt.