Binani Industries is in discussion with potential financial investors such as JP Morgan and state-owned funds in the Middle East to sell up to 40% stake in its subsidiary Binani Cementas. With this initiative company plans to raise capital to cut debt and expand cement capacities.
The entity has taken an in-principal approval from the board to divest its holding up to 40% to financial investors on a structured basis. Ernst & Young (E&Y), Braj Binani group's banker for the transaction, has held preliminary talks with the prospective investors.
Further, for this transaction, the potential investors may include Abu Dhabi Investment Authority and Qatar Investment Authority. The company, with a capacity of 11.25 mtpa, has a 2 mtpa grinding unit in Dubai's Jebel Ali Industrial Area.
