Austrian firm RHI AG, a leading global refractories maker, today entered into an agreement to buy 43.6 per cent of the promoters' stake in the city-based Orient Refractories (ORL) for nearly Rs 230 crore.
"Orient Abrasives, S G Rajgarhia along with other promoters of ORL have entered into a share purchase agreement today with Dutch US Holding, Netherlands, an entity owned by RHI AG, Austria for sale of 5.24 crore shares held by them in the company (aggregating 43.62 per cent) at a price of Rs 43 per share," ORL said in a BSE filing.
ORL produces refractories and monolithics for the use in iron and steel industry. Listed on the National Stock Exchange as well as the Bombay Stock Exchange, the company had clocked Rs 300 crore sales in the last fiscal.
ORL's manufacturing and R&D facility is based in Bhiwadi, Rajasthan and has eight sales offices in various parts of the country. The proposed sale is subject to various conditions that includes regulatory approvals.
"ORL's business is complementary to RHI's current market position... ORL's technical and service know-how as well as its Indian production facility will further strengthen RHI's service-oriented sales approach for the growing Indian and Asian steel industry," RHI said in a statement.
RHI would make an open offer to the public shareholders for up to an additional 26 per cent of the shares of ORL at Rs Rs 43 per share, it added.
"S G Rajgarhia will carry on as a member of the future board of directors of ORL as he will continue to own below five per cent of the shares," RHI AG said.
ORL's shares today settled at Rs 36.95 apiece, down 6.10 per cent in the BSE over the previous closing.