Nitco Tiles eyes stake in Chinese tile maker
Building materials supplier Nitco Tiles Ltd plans to spend $25-30 million to acquire stake in a Chinese tile manufacturer within the next two months, a top company official said on Wednesday.
By PTI |
MUMBAI: Building materials supplier Nitco Tiles Ltd plans to spend $25-30 million to acquire stake in a Chinese tile manufacturer within the next two months, a top company official said on Wednesday.
"We are talking to our existing joint venture partners there and could also take a stake in another company," Managing Director Vivek Talwar told media.
Nitco will use the capacity in China to cut costs and to export tiles to other countries directly, he said. The company is also in the process of raising capacity at its units in India.
The acquisition will be financed out of a proposed Rs 2.5 billion issue of securities to overseas investors or to qualified institutional buyers. The company has already obtained shareholder approval for the issue.
Nitco's promoters also plan to sell their entire stake in unlisted group firm Nitco Paints to US-based paints major Sherwin-Williams Co, Talwar said, but declined to put a value on the transaction.
ADVERTISEMENT
The deal is expected to be completed by April, he said.Start a SIP with as low as ₹500 with ET Money App!
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
