Dalmia Cement to raise Rs 750 crores from KKR

Dalmia Cement (Bharat) Ltd has now announced with reference to Board Meeting, that as approved by the Board of Directors of the Company in its meeting held on May 07, 2010, the Company has entered into definitive agreements, namely, Share Subscription Agreement and Shareholders Agreement with Avnija Properties Ltd ("APL") and KKR Mauritius Cement Investments Ltd ("KKR").

As per the definitive agreements, KKR will make fresh equity subscription in APL to the extent of Rs. 7,500 mn in multiple trenches and KKR entitled to get equity state upto 21% of APL post investments. The investment by KKR shall be subject to necessary approval(s) and fulfillment of agreed condition precedents.

Besides above, the definitive agreements also contains the covenants on affirmative rights to KKR, appointment of nominee director in APL and exit option including through Initial Public Offer at the level of APL.

The stock was trading at Rs.232.65, down by Rs.8.75 or 3.62%. The stock hit an intraday high of Rs.275 and low of Rs.229.

The total traded quantity was 84922 compared to 2 week average of 67055.

Source : Equity Bulls

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