Baroda-based Banco Products India Limited, along with its subsidiaries, has decided to exit its Tanzania-based cement unit Lake Cement Limited for $17.68 million, according to a stock market disclosure.
While Banco Products will be selling entire 3,721 equity shares for $0.38 million, Lake Minerals (Mauritius) Ltd and Nederlandse Radiateuren—Banco Products' subsidiaries—will divest their combined 1,74,875 equity shares for $17.3 million, the disclosure added.
It did not divulge the name of the buyer.
Banco Products had acquired 51 per cent equity stake in Lake Cement, 0.5 million tonne per annum capacity project combined with a 10 megawatt power plant, in July 2010. The project includes limestone-mining, clinker & cement production and packing.
Founded in 1961, Banco Products manufactures gaskets and radiators that are the components in sealing and cooling applications in automotive, power, earthmoving and industrial engines.
Shares of Banco Products India last traded at Rs 81.9 a unit, up 1.3 per cent on the Bombay Stock Exchange in a flat Mumbai market on Thursday.
(Edited by Joby Puthuparampil Johnson)