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Journalism of Courage
Tiles maker Kajaria Ceramics today said it has acquired a 51 per cent stake in Gujarat-based Soriso Ceramic in an all-cash deal for Rs 5.6 crore.
The same translates into acquiring 1.53 million equity shares of Rs 10 each at Rs 36.63 per share,Kajaria Ceramics said in a statement.
This acquisition shall help both the companies to increase the capacity further to cater to the southern and western part of the country to take advantage in transportation charges, Kajaria Ceramics Limited Chairman Ashok Kajaria said.
With this acquisition,Kajaria Ceramics total capacity would touch 30.60 million square metre by March 2011. Soriso has an annual capacity to produce of 2.30 million square metres of ceramic floor tiles.
The acquisition will also add a new production base for the company in Gujarat. It already has manufacturing operations in Uttar Pradesh and Rajasthan.
In January this year,the company had tied up with Turkey-based Eczacibasi for marketing and sales of VitrA bath ware products as an exclusive and sole marketer and distributor for India.
Shares of Kajaria Ceramics today closd at Rs 68.95 on the Bombay Stock Exchange,up 1.55 per cent from its previous close.
