Mumbai, Maharashtra, India
Aditya Birla Group today informed that it has increased its stake from 75% to 95% in the two joint venture companies in Canada viz. AV Cell Inc and AV Nackawic Inc at a total consideration of around Canadian $ 9 million. The Group has acquired the additional 20% stake in these two companies from Tembec Group, its joint venture partner in these entities. While Grasim Industries Ltd. has acquired the additional stake in AV Cell Inc increasing its holding in AV Cell from 25% to 45%, PT Indo Bharat Rayon Indonesia, has acquired the additional 20% stake in AV Nackawic.
Tembec's decision to dilute its stake in these two entities is part of their effort to focus resources on its core business units. Says Mr. Shailendra K. Jain, Director Pulp & Fibre Business of Aditya Birla Group "this transaction fits very well with our strategy of securing cost effective Pulp requirements of the VSF business. The longstanding relationship with Tembec will continue as before and we at Aditya Birla Group are indeed happy that Tembec will remain a much valued shareholder in both the companies". He added "The conversion of the AV Nackawic plant from Paper Grade pulp to Rayon Grade pulp is progressing well and is expected to be completed in July 2008".
Source: Aditya Birla Group (Business Wire India)
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