Ashapura Minechem to buy Orient Abrasive for Rs 400 Crore

Multi-mineral solutions provider Ashapura Minechem BSE 2.62% is set to acquire BSE listed Orient Abrasive for Rs 400 crore, according to two people close to the negotiations. 

Bombay Minerals, a wholly-owned subsidiary of Ashapura Minechem, has agreed to buy the 25.52 per cent promoters' stake in Orient Abrasive, they said, adding that the deal is likely to be signed by the end of June. 

As per the takeover regulations, Ashapura Minechem is expected to make a mandatory open offer for another 26 per cent stake in the company, which is promoted by Gopal Rafgarhia and family. 

The buyer is making an open offer of between Rs 31 and Rs 33 per share, the persons quoted earlier said. Till the time of going to press, Orient Abrasive and Ashapura Minechem had not responded to ET's email query on the development. 

Ashapura Minechem has mining and mineral processing facilities in several Indian states and some projects overseas. Orient Abrasive is into manufacturing and selling of fused alumina products, refractories and monolithic. Talks between the two entities have been on since last year.

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