RHI: acquisition of ORL

A wholly-owned affiliate of RHI AG has signed a share purchase agreement to acquire 43.6% of the share capital of Orient Refractories Ltd. (ORL) and, as a consequence, both RHI and its affiliate are making an open offer to public shareholders for up to an additional 26% of the shares of ORL.

A wholly-owned affiliate of RHI AG has signed a share purchase agreement to acquire 43.6% of the share capital of Orient Refractories Ltd. (ORL).
ORL is an Indian producer of special refractories and monolithics listed on both the National Stock Exchange of India and the Bombay Stock Exchange. The selling shareholders that hold the largest stake of the 43.6% are the immediate family members of S.G. Rajgarhia. The transaction price amounts to EUR 31 million (INR 2.3 billion). The proposed sale of shares as aforesaid is subject to various conditions precedent including regulatory approvals.
As a consequence of the above-mentioned transaction, and based on the Securities and Exchange Board of India Regulations, RHI’s wholly-owned affiliate, acting in concert together with RHI AG, are making an open offer to public shareholders for up to an additional 26% of the shares of ORL. The offer price is INR 43 (EUR 0.6) per equity share amounting to a total of up to EUR 18.5 million.
Headquartered in New Delhi, India, ORL’s manufacturing and R&D facility is located in Bhiwadi, Rajasthan, together with eight sales offices located throughout India. For the business year ending March 2012, ORL had revenues of approximately EUR 44 million, an EBIT of approximately EUR 7 million. 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% of the shares.