By Paul Ploumis 27 Jul 2015 Last updated at 08:48:21 GMT
MUMBAI (Scrap Monster): Rajesh Exports- the leading Indian gold exporter announced that it has fully acquired the Swiss gold refinery Valcambi in an all-cash deal of US$ 400 million (nearly 2,600 crore). In a filing to the Bombay Stock Exchange (BSE), the company stated its wholly-owned subsidiary in Singapore has acquired 100% stake in Valcambi, owned by Newmont Mining Corporation.
According to Rajesh Mehta, Chairman, Rajesh Exports Ltd, the acquisition is expected to add significantly to the revenues and profitability during the forthcoming years. Moreover, the acquisition will transform the company into an integrated player specializing in precious metals refining and gold jewellery making. The acquisition will ensure steady supply of rough gold to the company’s gold jewellery manufacturing business at competitive prices, thereby boosting its domestic refining capabilities.
Earlier during the month, Rajesh exports had received board approval to perform deal negotiations with Newmont Mining Corporation.
The company was being assisted in the deal by Grant Thorton. The acquisition is partly financed by Credit Suisse through a long-term debt.
Rajesh Exports Limited (REL) headquartered in Bangalore, India manufactures gold & diamond jewellery. REL exports its products worldwide and distributes them within India to the wholesale jewellery market. REL also retails its products through its own network of retail jewellery showrooms Shubh Jewellers spread across India. It is also lowest cost gold jewellery manufacturing company in the world.