RHI Magnesita Announces Plan to Merge Indian Subsidiaries
According to RHI Magnesita, the key objective of the proposed scheme is to combine the strengths and competencies of all three companies to establish one consolidated listed company that is well-positioned to seize future growth opportunities and enhance shareholder value.
RHI Magnesita recently announced the proposed merger of its three Indian subsidiaries. The merger is reportedly designed to optimally position RHI Magnesita’s operations in the strategically important Indian market to capture growth opportunities more effectively and efficiently. At their respective recent meetings, the boards of directors of Orient Refractories Ltd., RHI India Private Ltd. and RHI Clasil Private Ltd. approved the proposal to merge RHI India and RHI Clasil with Orient Refractories, pursuant to a composite scheme of amalgamation.
Orient Refractories is listed on the Mumbai stock exchange. On completion, RHI Magnesita will own approximately 70% in Orient Refractories, which will be renamed RHI Magnesita India. The transaction is expected to be completed in the next 9-12 months.
According to RHI Magnesita, the key objective of the proposed scheme is to combine the strengths and competencies of all three companies to establish one consolidated listed company that is well-positioned to seize future growth opportunities and enhance shareholder value. Orient Refractories is currently 70% owned by RHI Magnesita and a leading manufacturer and supplier of special refractory products, systems, and services for the steel industry. RHI India, a wholly owned RHI Magnesita subsidiary, is the Indian sales company of RHI Magnesita group. RHI Clasil, 53.7% owned by RHI Magnesita, is a manufacturer and supplier of mainly alumina-based refractories for steel and cement.
“The proposed merger of our Indian subsidiaries marks an important milestone towards expanding RHI Magnesita’s market leadership in the refractory market in India,” said Stefan Borgas, CEO of RHI Magnesita. “One strong, integrated organization and management will increase long-term value for all stakeholders and efficiently combine resources and capabilities. This merger will significantly enhance the profile of RHI Magnesita in India and creates a stronger foundation to tap the immense growth potential we see in the Indian market.”
The scheme will be subject to approvals from various relevant regulatory authorities, including approvals from the stock exchanges, shareholders and creditors of the respective companies; the National Company Law Tribunal (NCLT) in India; and necessary corporate approvals and filings with the registrar of companies and the stock exchanges. Additional details are available at www.rhimagnesita.com.