Dubai-based Simec may buy stake in ABG Cement's Gujarat unit: Sources.

Three sources with direct knowledge share that Dubai-based Simec is likely to buy up to 51 per cent in ABG Cement's Gujarat unit. Enterprise value of the 5.8 million tonne cement facility is expected to be around Rs. 3500 crore, two sources suggest. ABG Cement could be getting around Rs. 550 crore cash which may be utilized to infuse funds in group company, ABG Shipyard, as part of its Rs. 11,000 crore CDR package.

IFCI owns 9 per cent stake in ABG's Cement facility which comprises of 5.8 mt cement grinding unit at Surat and 3.3 mt of clinker unit at Kutch near limestone reserves.

Companies involved in the transaction, ABG Cement and Simec did not offer any comment on the deal development.

ET