Mumbai : Orient Ceramics and Industries Ltd. (OCIL), a leading tiles manufacturer, has announced that it has entered into Share Purchase Agreement with Bell Ceramics Ltd. (BCL) and S.K. Jatia, Promoter of BCL, to acquire 76,59,925 equity shares of Rs 10 each constituting 62.92% of total equity shares capital of BCL at a price of Rs 20.60.
OCIL also said that it would also make an open offer to the shareholders of BCL for the acquisition of up to 24,34,762 shares or 20% of voting rights.
Maple Capital Advisors were the sole advisors for the deal.
Speaking on the occasion, Madhur Daga, Executive Director, OCIL, said, ?I am proud to be part of a team which has participated in the Indian tile industry’s first consolidation. In a distribution intensive industry like tiles, proximity to consumers is a key to success.?
The acquisition of majority of stake in BCL is in line with OCIL?s inorganic growth strategy. The combined turnover of OCIL and BCL will make OCIL the fourth largest tile company in the country and the one with the largest installed capacity amongst all tile manufacturers in India and also the only one to have plants in North, West and South India.
Speaking on the occasion, Vijay Shankar Sharma, CFO, OCIL, said, ?With OCIL manufacturing experience and enhanced market potential for both the companies, we are confident of doing a turnaround of BCL performance and enhance OCIL?s own financial performance and provider better shareholder returns to investors of both companies.?
OCIL has its plant in North India and majority of sales in North and East India whereas BCL has plants in West and South India where most of its market is. This translates into excellent synergy for the combined business of OCIL.