Mumbai, June 17: Larsen & Toubro (L&T) today decided to demerge its cement business into a new company, CemCo, in which it will hold 20 per cent equity while the balance equity will be distributed to L&T shareholders in proportion of their holdings in the company. The shares of CemCo will initially be listed at the stock exchange, Mumbai and National Stock Exchange, L&T CEO and managing director A M Naik announced here today.
He said Grasim Industries Ltd will acquire 8.5 per cent stake in the cement company at Rs 171.30 per share. Thereafter it will make an open offer at the same price for 30 per cent of its equity capital with a view to take management control, he added.
Concurrently, Grasim and its associates will sell their entire holding in the demerged unit at Rs 120 per share to the L&T foundation or trust that is being formed, he said after the board meeting.
The entire deal is subject to necessary approvals, he added.
Bureau Report