Hyderabad based Sagar Cement, announced that its board of directors has accorded 'in principle' approval for the acquisition of 100% equity stake in BMM Cements. The company has an enterprise value of Rs 5.4 billion and has limestone reserves of around 155 million tons.

BBM owns a million tonne per annum cement plant with a captive power unit of 25 MW capacity near Tadipatri, Anantapur district, Andhra Pradesh.

Commenting on the said in principle approval, Sreekanth Reddy, executive director, Sagar Cements said, ''The proposed acquisition of BMM Cements comes at an opportune time wherein the demand environment and pricing in our region of operations looks encouraging. The two companies are wholly complementary geographically with considerable potential for synergies. We intend to continue to drive growth and explore both inorganic and organic opportunities that will enhance long-term stakeholder value.''

Shares of the company gained Rs 5, or 1.47%, to trade at Rs 345. The total volume of shares traded was 200 at the BSE (9.30 a.m., Thursday).