Carborundum Universal to buy out partner's stake in Cellaris Refractories
05 August 2014
Murugappa Group company Carborundum Universal Ltd (CUMI) has agreed to acquire the 49-per cent equity stake held by partner Cellaris Ltd of Israel in their joint venture Cellaris Refractories India Ltd (CRIL).
Cellaris Refractories, a joint venture between Carborundum Universal and Cellaris Ltd of Israel, is engaged in the production of light weight alumina cell, which is used for refractory / insulation application.
CUMI has 51 per cent share in CRIL while Cellaris holds 49 per cent of the total paid-up equity shares of 137.2 million.
Carborundum proposes to purchase 6,725,250 shares representing the 49 per cent equity capital held by Cellaris in CRIL, subject to necessary approvals.
CRIL, currently a subsidiary of CUMI, will become a wholly-owned unit of the company post acquisition.
CUMI plans to scale up operations of CRIL post acquisition while ensuring continuity of operations.
CUMI, a vertically-integrated abrasives, electro-minerals, ceramics, refractory company, has operations in Australia, Canada, China, India, the Middle East, Russia, South Africa, Thailand and the US.
CUMI reported a 3 per cent year-on-year increase in consolidated net sales for the April-June quarter to Rs516 crore from Rs501 crore in the January-March quarter.
Profit after tax (PAT) increased by 10 per cent while profit after tax and after minority interest dropped from Rs28 crore to Rs27 crore during the April-June 2014 quarter.
PBIT decreased by 9 per cent to Rs49 crore in the current quarter from 54 crore in the previous quarter, against a 4 per cent year-on-year increase in the previous year quarter.