To sell a minority stake in its cement business for about $150 million, ABG Group is in talks with private equity and financial firms. The company’s cement business, housed under ABG Cement, has a 6.5-million tonne facility in Kutch, Gujarat, which is expected to be commissioned in a few weeks.
According to Dhananjay L Datar, Director of ABG Group, the potential deal is at a preliminary stage with several parties evincing interest in the cement unit.
People familiar with the matter said that private equity A-listers like Blackstone and KKR have held initial round of talks and that Rishi Agarwal-promoted ABG Group could sell up to 49.9 per cent stake in the cement venture.
The 27-year-old enterprise forayed into the cement business a few years ago as part of its broader plans in the infrastructure space and its access to limestone mines in the western region. Limestone is the key raw material for manufacturing cement.