JP Morgan may pick up 25% in Binani Cement

JP Morgan may pick up 25% in Binani Cement
19 August 2005

An equity fund controlled by JP Morgan Chase is likely to pick up 25 per cent stake in Binani Cement for around Rs 150 crore. JP Morgan’s restructuring fund, it is learnt, will invest in the cement arm of Binani Industries, which is in the midst of doubling its capacity to 4Mt.

Binani Industries chairman and managing director Braj Binani is likely to be in the city next week to finalise the deal, which would value Binani Cement at around Rs 600 crore. JP Morgan’s fund may pay close to Rs 25 per share for the private placement.

Binani group officials, however, declined to comment on the development, saying nothing concrete has emerged yet. A senior JP Morgan official neither confirmed nor denied the deal. Sources, however, said JP Morgan has been conducting due-diligence for quite some time and a deal is set to be struck soon.

Published under Cement News