Dalmia Bharat Ltd. has announced the signing of a definitive agreement with KKR, under which DBL will acquire KKR's stake in Dalmia Cement Bharat Ltd. (DCBL) and concurrently bring in KKR as DBL's largest institutional shareholder with 8.5% holding. The transaction will simplify DCBL's shareholder structure with DCBL becoming a 100% subsidiary of DBL

DBL will make a preferential issue of 7.5 million equity shares to KKR at INR 825/share and pay KKR a cash consideration of INR 600 crore (USD 89 million) to acquire KKR's ~15% stake in DCBL.

Sanjay Nayar, Chief Executive Officer of KKR India, said "We are proud of our association with Dalmia Bharat and continue to believe in its long-term growth. Dalmia team has executed greenfield projects and integrated its acquisitions successfully. We believe that the Indian macroeconomic growth and infrastructure story is poised for a significant uptick in the coming years and the consolidation in cement industry is likely to happen.

"Given our confidence in Dalmia's strategy & execution capabilities and corporate governance, we will continue to back Dalmia Cement's growth and will leverage KKR's global platform to support the company's vision of being a leader in the Cement sector."

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