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JSW Cement, Sun Inv to buy 32% stake in Shiva Cement for Rs14/sh

Speaking to CNBC-TV18, RP Gupta, MD & chief promoter of Shiva said that Shiva Cement will sell 19.5 crore shares to JSW Cement. The promoters, who has 36 percent stake in SHiva, will exit the company once the deal is done.

January 11, 2017 / 12:38 IST
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JSW Cement and Sun Investments have launched an open offer to buy 32 percent stake in Shiva Cement at Rs 14 a share, said the company’s MD & chief promoter RP Gupta.Speaking to CNBC-TV18, Gupta said that Shiva Cement will sell 19.5 crore shares to JSW Cement. The promoters, who held 36 percent stake in Shiva, will exit the company once the deal is done. On the reason for sale, Gupta said: "We thought in the interest of the shareholders, employees and the company - on the standalone basis, we were not able to expand the plant."ACC, which is the strategic investor in the company with 13 percent stake, could also exit in the future.Shiva Cement is currently operating at a capacity of Rs 2 lakh tonnes and has recorded negative EBITDA/tonne.Below is the verbatim transcript of RP Gupta's interview to Latha Venkatesh, Sonia Shenoy & Nigel D'Souza. Sonia: Your press release is devoid of information, so could you tell us what is the total amount of this sale and how much of the promoter holding will be sold?

A: The total quantum of shares is 19.5 crore out of which the promoters are holding about 35.5 percent shares.

Latha: How many shares did you sell?

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A: The promoters exit in total.

Latha: So that is how many shares and at what price?