Austrian firm RHI AG, a leading global refractories maker, on Tuesday, entered into an agreement to buy 43.6 per cent of the promoters’ stake in Orient Refractories Ltd. (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 [Tuesday] with Dutch US Holding, the 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 use in iron and steel industry. Listed on the National Stock Exchange and 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.
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.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 5 per cent of the shares,” RHI AG said.
ORL’s shares on Tuesday settled at Rs.36.95 apiece, down 6.10 per cent on the BSE over the previous closing.
