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KKR to acquire stake in Dalmia Cement

Saturday, 08 May 2010
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Kohlberg Kravis Roberts (KKR) is likely to acquire 15-20 per cent stake in Dalmia Cement (Bharat)'s (DCBL) unlisted unit for up to Rs 750 crore.

DCBL is likely to draw Rs 500 crore immediately and has an option to utilise another Rs 250 crore in the next 18 months. KKR is expected to get a 15 per cent stake if DCBL draws down only Rs 500 crore, but the stake will rise to 20 per cent if it draws additional Rs 250 crore.

The unlisted entity, which is a wholly-owned unit of the listed DCBL at present, will house DCBL's nine million tpa manufacturing capacity, its entire 45.4 per cent stake in cement maker OCL and the proposed 10 million tonne of new capacity.

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