Dalmia Bharat inks definitive agreement with KKR

Dalmia Bharat (DBL) has signed a definitive agreement with KKR, under which DBL will acquire KKR's stake in Dalmia Cement Bharat (DCBL) and concurrently bring in KKR as DBL's largest institutional shareholder with 8.5% holding. The transaction will simplify DCBL's shareholder structure with DCBL becoming a 100% subsidiary of DBL.

DBL will make a preferential issue of 7.5 million equity shares to KKR at Rs 825 per share and pay KKR a cash consideration of Rs 600 crore (USD 89 million) to acquire KKR's 15% stake in DCBL. The transaction is subject to regulatory approvals and other customary closing conditions.