Carborundum Universal - Updates
Carborundum Universal Ltd has informed that the Company has acquired on September 07, 2007, 84% of the ordinary shares of OAO “VOLZHSKY ABRASIVE WORKS” (VAW), located in the Volgograd Region of Russia, through its wholly owned subsidiary, CUMI International Ltd, Cyprus for a consideration of around US $ 37 million.
VAW holds on date 12.67% of its ordinary shares as treasury investment, which represents approximately 10% of VAW’s charter capital. Cancellation of VAW’s treasury shares will result in CUMI’s holding going up to 96% of the ordinary shares. An open offer for the balance 4% ordinary shares is being made as per statutory requirements.
VAW is a leading producer of SiC grains, Bonded Abrasives products and Refractories. The sales in 2006 were about US$ 54 million. CUMI is one amongst the two fully vertically integrated players in the world in this space. The synergy between the 2 organisations is expected to enhance value and growth.
