Kesoram Industries (KIL) has signed a binding term sheet with JK Tyre & Industries to divest Cavendish Industries (CIL) for a consideration of Rs 2,195 crore. The process of completion of this deal is likely to be concluded within December 2015. CIL houses a tyre business undertaking in Haridwar that manufactures a range of tyres, tubes and flaps.
This transaction will strengthen the balance sheet of the company. The proceeds from monetization of assets will be utilized to reduce the debt burden of the company.
Kesoram Industries is engaged in the manufacture of cement, tyres, tubes, rayon, paper, heavy chemicals and spun pipes. KIL is also listed on Societe de la Bourse de Luxembourg stock exchange.
