THE US based private equity firm Kohlberg Kravis Roberts has agreed to pick up 14.5% stake in an unlisted entity of Dalmia Cement (Bharat) for INR 500 crore, taking the offshoot’s valuation higher than the parent’s.

In March, Dalmia Cement said it will spin off its cement, power and refractory businesses into a wholly owned unit, Dalmia Bharat Enterprises, and list it on the stock exchanges by December. Post restructuring, Dalmia Cement will own 100% in Avnija, which will house Dalmia’s 9 million tonne capacity plants and the upcoming green field project of 10 million tonnes. The parent company’s 45% stake in OCL will also be shifted to Avnija.

KKR will acquire the stake in Avnija through purchase of fresh shares and it expects to close the deal within two months. KKR, which has invested USD 1.1 billion in India, is likely to send a representative on the Avnija board.

(Sourced from ET)