Hindalco to buy 10 p.c. stake in Bihar Caustic from Grasim

MUMBAI, DEC. 9 As part of a restructuring exercise, Hindalco Industries is to pick up a 10 per cent stake in Bihar Caustic and Chemicals (BCCL) from Grasim Industries, another Aditya Birla group company.

The transfer of 7.80 lakh equity shares will be at Rs. 13 per share aggregating to Rs. 1.01 crores, Hindalco said in a notice to the Bombay Stock Exchange here today.

Hindalco and Grasim each hold 10 per cent of the equity of BCCL, it said adding that post-acquisition Hindalco will hold 20 per cent of the equity.

The group, as part of a restructuring exercise, plans to consolidate its investment in BCCL under one company, it said.

With Hindalco being the major customer of caustic soda from BCCL, accounting for about 80 per cent of total sales of the latter, the consolidation of the group's holding under one company would achieve significant synergy, it said.

- PTI

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