ITD Cementation clarifies amid buzz of KEC International likely frontrunner to acquire promoter stake in company

ITD Cementation clarifies

ITD Cementation on August 2 clarified on the news report that suggested that infrastructure company KEC International is likely frontrunner to acquire promoter stake in the company.

In a regulatory filing, the construction company noted that as disclosed on July 3, due diligence process is underway and at a preliminary stage.

The clarification comes after CNBC-TV18 on August 1 reported citing sources that KEC International Ltd. has emerged as the frontrunner to acquire stake held by promoters of ITD Cementation. The sources further added that talks were also with two other players, one domestic and the other foreign, apart from KEC International for the stake sale.

Earlier in July, ITD Cementation had informed that Italian Thai Development Public Company Limited, the promoter shareholder of the company is exploring a potential possible divestment of their investments. The process began soon after.

"Apart from this one communication and intimation given, we are not aware of any information which could potentially require disclosure or generate movement in the trading," ITD Cementation added.

CNBC-TV18 had reported that according to sources, the deal conversations between KEC International and ITD Cementation are at an advanced stage and the announcement could be made by end-September, early-October.

Further, with regards to the stock movement on August 1 following the news, which led to the shares of ITD Cementation rises over 4 percent, the company noted, "...Kindly note that the company is not aware of any information that could have led to the movement in the price of the shares of the company."

ITD's Promoter Italian-Thai Development Public Company holds a 46.64% stake in the company at the end of the June quarter and is seeking a complete exit.

Meanwhile, shares of ITD Cementation on August 2 were trading 1.49 percent higher at Rs 518.80 apiece on BSE post the clarification filing, around 12:30 pm IST.