CRH's India unit to buy Sree Jayajothi cements from Shriram EPC

Shriram EPC Ltd said it agreed to sell its stake in Sree Jayajothi Cements Ltd to My Home Industries Ltd, owned by Ireland's building materials provider CRH.

Shriram EPC said the deal valued Sree Jayajothi at Rs 1400 crore and the company intends to use the proceeds to reduce debt, it said in a statement to the exchanges.

Indian investment bank Mape Advisory Group advised Shriram EPC in the transaction.

Shares in Shriram EPC rose more than 18 per cent in early trade after sources told Reuters on Sunday that Shriram Group will sell its stake in Sree Jayajothi.

Shares in Shriram were up 9.4 per cent at 47.70 rupees at 10.07 a.m.

Copyright: Thomson Reuters 2013