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Blackstone, KKR keen to buy Shriram unit stake

Jun, 29 2012

(India)  --  Private equity firms Blackstone Group and Kohlberg Kravis Roberts & Co (KKR) have shown interest in buying a large stake in the cement unit of the Southern India based diversified $9 billion conglomerate Shiram Group.

Another US private equity Mount Kellett had also met with Shriram on the potential investment opportunity even though it may not take the interest forward.

Shriram EPC, which took controlling stake in Andhra Pradesh based Sree Jayajothi Cements, plans to raise more than Rs 400 crore to boost its operations. The company has hired the services of Investment bank MAPE Advisory for seeking advice on the fund raise.

"We are looking out for private equity investors for Sree Jayajothi Cements. Nothing has been finalized and we do not wish to comment anything beyond on this topic now," T Shivraman, MD & CEO of Shriram EPC said.

KKR already holds a stake in Dalmia Cements but has evinced interest in Shriram's cement unit independently.

"We are looking out for private equity investors for Sree Jayajothi Cements. Nothing has been finalized and we do not wish to comment anything beyond on this topic now," T Shivraman, MD & CEO of Shriram EPC said.

Shriram EPC has a 70% stake in Jayajothi Cements after it converted long pending dues into equity earlier this year. Shriram now wants a financial partner to steady the cement business, and would let the private equity keep an equal stake post dilution.

Blackstone declined to comment. KKR also could not be reached for immediate response.

By: Rashmi Kalia (ARI-C NEWS)

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