The board of directors of JK Cement have accorded in principle approval to sign/execute a share purchase agreement with the shareholders and also with Toshali Cements (Toshali) for acquisition of 100% equity shareholding from all the existing shareholders of Toshali, the company said in a BSE filing.
Total cost of acquisition is Rs 157 crore. Upon making of such investment, Toshali will become a subsidiary of the company.
Toshali Cement at present has two manufacturing units: integrated units with clinker capacity of 0.33 MTPA; grinding capacity of 0.198 MTPA. The Unit is located at Ampavalli, Odisha and grinding unit of 0.435 MTPA annual cement production capacity. The unit is located at Choudwar, Odisha.
The acquisition will help it to expand its footprint into the Eastern Region, the company said in the regulatory filing.