France’s Vicat buys 51% in Bharathi Cem

SA des Ciments Vicat, the French cement major, has sealed an agreement for acquiring 51% in Bharathi Cement, it told the NYSE.
DNA first broke the story on April 16 that Vicat is acquiring Bharathi Cement, which is owned by Y S Jagan Mohan Reddy, a Member of Parliament from Kadapa and son of former Andhra Pradesh chief minister Y S Rajasekhara Reddy.

The company will finance the acquisition through debt.

Though Vicat has not disclosed any valuation, an investment banking source said the deal, to be priced around $200 per tonne, at Bharathi’s current capacity of 2.5 million tonne, could cost $500 million. Dalmia Cement, India Cement and N Prasad, vice-chairman and founder of Matrix Laboratories, also have stake in the company.  Jagan Mohan Reddy owns about 69% of Bharathi. This is the second major transaction of Vicat in India after its JV, Vicat Sagar Cement.