Rajesh Exports acquires refiner Valcambi for $400 million - Jeweller Rajesh Exports Ltd has sealed a $400 million deal to buy Swiss company Valcambi, the world's largest gold refiner, to secure raw material supplies at lower prices and procure technological expertise to expand operations at home.
Rajesh Exports finalized the all-cash deal after a global sales process steered by Valcambi's owners, led by U.S.-based Newmont Mining Corp that has a 60.6 percent stake in it and will carry on to supply Valcambi with raw material for the next five years.
"Valcambi can fulfil entire gold requirement of India," Chairman Rajesh Mehta spoke in a news conference, adding the deal will help it obtain gold bars at lower prices.
India is the world's biggest end user of gold, with demand of around 900 tonnes per year. Valcambi has the ability to refine as much as 1,600 tonnes of gold a year which is nearly double India's annual consumption.
Credit Suisse, which once possessed Valcambi, will supply nearly 30-35 percent of the acquisition cost, Mehta informed and the remaining cost would come from Rajesh Exports' internal accumulations.
In the past three years, Valcambi has on average refined and retailed 945 tonnes gold and 325 tonnes silver per year.
Valcambi's senior management team will work in tandem with Rajesh Exports to help the ownership transition and future expansion, the Indian company said.
Shares of Rajesh Exports ended at 540.85 rupees after hitting a lifetime high of 549.70 rupees earlier in the day. The shares have nearly increase fourfold so far in 2015.