New Delhi: JK Group will acquire BK Birla flagship organisation Kesoram Industries’ tyre production plant during Haridwar for adult to Rs 2,200 crore.
JK Tyre and JK Asia Pacific Singapore Pte Ltd, a wholly- owned auxiliary of a company, have sealed a contracting tenure piece with Kesoram Industries (KIL) to acquire 100 percent equity in Cavendish Industries Ltd (CIL), JK Tyre pronounced in a statement.
CIL houses a tyre business endeavour located during Haridwar (Laksar) that manufactures a operation of tyres, tubes and flaps.
“JK Group has concluded for this merger during an craving value not surpassing Rs 2,200 crore, theme to conditions, wherein JK Tyre will reason a largest shareholding retard and shall have estimable government control of CIL with an choice to place adult to 55 percent with a associates/group companies,” a tyre builder said.
In a apart matter Kesoram Industries pronounced that it will deprive a auxiliary Cavendish Industries Limited where it binds 99 percent shareholding.
The association combined a understanding would strengthen a change piece of a association and it also remained committed to tyre business.
For JK Tyre, a merger will yield serve procedure towards prepared enlargement in a lorry and train radials shred as good as a entrance into a quick flourishing two- and three- wheeler tyre market.
“The transaction is a thoughtfulness of a fundamental strength of a association in endeavour acquisitions with turnaround intensity and successfully delivering formula to all a stakeholders in a business,” JK Tyre Chairman Raghupati Singhania said.
The merger is due to be saved by a multiple of debt and inner accruals lifted by JK Tyre and a other organisation entities.
“The financial bearing of JK Tyre in a merger is approaching to be of a sequence of Rs 450 crore. The final transaction is approaching to unqualified over subsequent few months (subject to several approvals) with decisive support approaching to be executed between a parties in due march of time,” it added.
JK Group, is one of a heading conglomerates in India with business interests in automotive tyres, cement, paper, auto-components and other businesses.
The group’s flagship firm, JK Tyre is among a tip 3 automotive tyre manufacturers in India with participation in truck, bus, newcomer cars and other vehicles, carrying 9 production plants all over a world.
In 2008, JK Tyre and Industries had acquired Mexican tyre association Tornel for Rs 270 crore.