Lafarge looking to sell stake in Indian operations?

Lafarge looking to sell stake in Indian operations?
21 December 2012

Private equity funds are in talks to buy a minority stake in Lafarge India as the cement company taps new ways to fund its expansion, the Economic Times of India reports.

Carlyle, KKR, Temasek and TPG Capital have begun preliminary talks with Lafarge India management, two sources close to the transaction said. Some of them have also signed non-disclosure agreements.

Lafarge wants to shed up to a 20 per cent stake to fund expansion plans worth about INR6000 crore, the ET reported.

" Lafarge is taking the logical step of tapping PE funds as cement sector valuations in India are the most expensive globally. The French multinational is making use of a favourable situation in terms of valuations," said Sonal Udasi, research head, IDBI Capital.

Published under Cement News