The Hindu Business Line : GHCL buys 65 pc stake in Romanian co

GHCL Ltd has announced that it has acquired a majority stake in SC Bega Upsom, a soda ash manufacturing company in Romania for $19.5 million (Rs 90 crore). The all-cash deal, to take up 65 per cent equity in the Romanian company, was finalised through GHCL's international subsidiary and the money came from its recent $80.5-million foreign currency convertible bonds (FCCB) issue.

As per the mandatory requirements, GHCL will now make a public offer to acquire the remaining 35 per cent equity in the Romanian company. In addition, the company has also entered into a memorandum of understanding to acquire a majority stake in the only other soda ash plant in Romania.

After the acquisitions, GHCL's total soda ash capacity will rise to seven lakh tonnes per annum in Romania and 13 lakh tonnes per annum globally, the company said in a notification to the Bombay Stock Exchange on Wednesday.

GHCL is also expanding its soda ash capacity in its Gujarat plant from six lakh tonnes per annum to 11 lakh tonnes per annum, it said.

"This acquisition is a first step towards attaining leadership position in the global soda ash industry with a strong presence in the European markets. The Romanian acquisition would provide us with the comprehensive knowledge of the European markets," according to the GHCL Chairman, Mr Sanjay Dalmia.

The company's stock closed at Rs 113 on the Bombay Stock Exchange on Wednesday, marginally higher than Rs 111.85 on Tuesday.

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