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HindustanTimes Sun,13 Jul 2014

Ruetgers deal sends rain commodities down 4.5%

HT Correspondent, Hindustan Times  Mumbai, October 23, 2012
First Published: 22:04 IST(23/10/2012) | Last Updated: 22:05 IST(23/10/2012)

Shares of Hyderabad based Rain Commodities on Tuesday plunged by 4.48% — a day after the company announced that its subsidiary Rain CII would acquire Belgium-based Ruetgers for €702 million or around Rs. 4,900 crore. This deal is India’s biggest acquisition this year.

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Shares of Rain Commodities closed at Rs. 39.4, down by Rs. 1.85.

The stock came under selling pressure from investors who seemed concerned if Rain Commodities, with a market capitalisation of Rs. 1,376 crore (on Tuesday close) would be able to meet funds to acquire the German coal tar pitch maker.

Rain Commodities already has a debt of R3,500 crore. The company made a net profit of Rs. 29 crore for the quarter ended in June. It has a net cash of around Rs. 1,200 crore and could utilise that for the acquisition.

Rain Commodities, that produces and sells CPC, cement, co-generation of energy and trading of fuel-grade green petroleum coke, also has plans in India, US and China. It will acquire stake (100%) in Ruetgers from private equity firm Triton. Triton has 23 companies in its portfolio.


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