Rajesh Exports (REL), through it's 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 USD 400 million. Grant Thorton assisted Rajesh Exports in due diligence and Credit Suisse is part financing the acquisition through a long term debt.
Valcambi is the world's largest precious metal's refining company headquartered at Switzerland. Valcambi has processed and sold 945 tons of Gold and 325 tons of Silver on an average per year during the last three financial years which is more than the annual consumption of gold in India.
Rajesh Mehta, chairman, Rajesh Exports said, "This is a historic moment for REL and for the global gold business. The coming together of REL and Valcambi would expand the global gold business and would prove very productive for the future global plans of REL group. We will seamlessly integrate Valcambi into REL group and would continue with the professional and globally acclaimed management of Valcambi. The acquisition is also of national importance for India, as India is the largest consumer of gold in the world, it would be a step in the right direction by an Indian company to own a world class asset like Valcambi. On a theoretical basis Valcambi is capable of supplying the entire gold requirement of India. This acquisition will add significantly to the revenues and profitability of REL group during the coming years."
Shares of the company gained Rs 1.8, or 0.34%, to trade at Rs 530.85. The total volume of shares traded was 153,866 at the BSE (9.51 a.m., Monday).