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Want to sell stake completely in Andhra Cement: GP Goenka
CNBC-TV18 catches up with GP Goenka, chairman of Andhra Cements to get his rationale and highlights on the management's decision to sell-out stake in Andhra Cements.
After many an attempt, Kolkata-based GP Goenka Group finally struck a deal yesterday with Jaypee Development Corp to transfer controlling stake in the cash-strapped Andhra Cement . According to a report by Reuters, they will allot 147.5 million equity shares to Jaypee, following which Jaypee will have to make an open offer to shareholders of the cement maker.
CNBC-TV18 catches up with GP Goenka, chairman of Andhra Cements to get the highlights on the development. He says that the sell-out is part of restructuring that the group is undertaking. "In the meantime, our (group) priorities changed and so we wanted to get out of having the controlling in the cement business," he says.
Goenka says that there is no non-compete fee involved in the stake sale. How much their stake will come down will depend on the equity value and debt. "Equity value has firmed up, but other than that, things are still in a bit of a limbo," Goenka says, explaining his move to sell-out.
According to him, the open offer will be priced at Rs 12 per share.
Also watch the accompanying video for GP Goenka's comments.
