Chennai, Sep 12 (IANS) JK Tyre & Industries Limited on Saturday announced that it has signed a binding term sheet with Kesoram Industries Ltd. to acquire the entire equity of Cavendish Industries Ltd (CIL) that makes tyres, tubes and flaps.
In a statement issued here, JK Tyre said it along with its wholly-owned subsidiary JK Asia Pacific Singapore Pte Ltd signed the agreement with Kesoram Industries Ltd. for the acquisition of CIL.
CIL has a tyre unit at Haridwar.
According to the statement, JK Group has agreed to this acquisition at an enterprise value not exceeding Rs.2,200 crore.
The acquisition is proposed to be funded by a combination of debt and internal accruals raised by JK Tyre and other JK Group entities. The financial exposure of JK Tyre in the acquisition is expected to be of the order of Rs 450 crore, the statement said.
The statement is silent on the financials of CIL and an email to JK Tyre by IANS remain unacknowledged.