“Rajesh Exports Ltd (REL) through its wholly-owned subsidiary in Singapore has fully acquired European Gold Refineries, the 100% holding company of Valcambi in an all cash deal with a total investment of $400 million”, Rajesh Export said in a BSE filing.
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The cash purchase of Valcambi from Newmont Mining Corp. helps ensure gold supplies to India, the world’s largest consumer of the metal after China, Bangalore-based Rajesh said in an exchange filing Monday.
Valcambi is the world’s largest precious metals refining company headquartered in Switzerland, a press release from the company said. The firm generated revenues of over $38 billion (Rs 2,36,500 crore) and EBITDA of $33 million (Rs 205 crore) by refining and selling 945 tonnes of gold and 325 tonnes of silver on an average per year for the last three years.
After the acquisition, the world’s largest gold jewellery maker will expand capacity at it’s India-based refinery, Rajesh Mehta, the company’s chairman told Reuters.
“Nearly 50 percent of our gold bars lands in India through direct and indirect channels like banks”.
Valcambi’s senior management team, including chief executive Michael Mesaric, will join Rajesh Exports to aid the ownership transition and future expansion, the Indian company said.
According to Rajesh Exports’ chairman Rajesh Mehta, the acquisition will increase the Indian company’s capacity from its current 80 tons a year to 200 tons a year.
Rajesh Exports manufactures gold and diamond jewellery and exports its products worldwide and distributes them within India to the wholesale jewellery market. Rajesh Exports rose 2.4 percent, or 13 rupees, to 545 rupees on the National Stock Exchange, where 6.9 lakh shares were traded in the first one hour of trade compared with the 5-day average of 24.6 lakhs.
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Grant Thorton assisted Rajesh Exports in due diligence and Credit Suisse is part financing the acquisition through a long-term debt.
