India Cements’ board clears sale of select arms

With the N.Srinivasan-promoted The India Cements Ltd. (ICL) slipping into the fold of UltraTech Cements Ltd., an Aditya Birla group company, the new management has unleashed a slew of sale initiatives.

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The board of ICL, which met on Tuesday, decided to sell its investments in several subsidiaries and other outfits. Just consider these:

* The board has decided to sell its entire equity investment in Coromandel Travels Limited (CTL), a subsidiary of the company. Upon completion of the said sale, CTL would cease to be a subsidiary.  “The company shall enter into an agreement with Chennai-based Venbro Investments and Financial Services Private Limited, the proposed buyer, upon finalisation of terms,” the company said in a stock exchange filing.  It is proposed to sell CTL at a consideration of Rs.3.98 lakhs.

* The board has also approved the sale of its entire equity investment in Raasi Cement Limited (RCL), an associate of the company. ICL Financial Services Limited (ICLFSL) and ICL Securities Limited (ICLSL), wholly-owned subsidiaries of the company, have approved sale of their entire equity investment in Raasi Cement Limited, an associate of the company. Upon completion of the said sale, Raasi Cement Limited will cease to be an associate of the company. It is proposed to sell at a consideration of Rs. 10,000. Raasi Cement is also being sold to Venbro Investments and Financial Services Private Limited.

* The board has further approved the sale of its entire equity investment in Coromandel Electric Company Limited (CECL), a subsidiary of the company. Further, Coromandel Sugars Limited, an associate company in which CECL holds 49.99% of equity shares, would also cease to be an associate of the company. ICL Financial Services Limited and ICL Securities Limited, wholly-owned subsidiaries of the company, shall enter into an agreement with Adam & Coal Resources Private Limited, the proposed buyer, upon finalisation of terms. The sale consideration is pegged at Rs.36.27 crore.

* The board has also decided to sell its entire equity investment in Unique Receivables Management Private Limited, an associate of the company. Again, this is being sold to Venbro Investments and Financial Services Private Limited.

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