KKR Strengthens Association with Dalmia

Dalmia Bharat simplifies corporate structure

Dalmia Bharat Ltd. (“DBL” or “The Company”) today announced the signing of a definitive agreement with KKR, under which DBL will acquire KKR’s stake in Dalmia Cement Bharat Ltd. (DCBL) and concurrently bring in KKR as DBL’s largest institutional shareholder with 8.5% holding. The transaction will simplify DCBL’s shareholder structure with DCBL becoming a 100% subsidiary of DBL DBL will make a preferential issue of 7.5 million equity shares to KKR at INR 825/share and pay KKR a cash consideration of INR 600 crore (USD 89 million) to acquire KKR’s ~15% stake in DCBL.

Mr. Sanjay Nayar, Chief Executive Officer of KKR India, said “We are proud of our association with Dalmia Bharat and continue to believe in its long-term growth. Dalmia team has executed greenfield projects and integrated its acquisitions successfully. We believe that the Indian macroeconomic growth and infrastructure story is poised for a significant uptick in the coming years and the consolidation in cement industry is likely to happen. Given our confidence in Dalmia’s strategy & execution capabilities and corporate governance, we will continue to back Dalmia Cement’s growth and will leverage KKR’s global platform to support the company’s vision of being a leader in the Cement sector.”

Mr. Puneet Dalmia stated that, “This transaction reinforces the excellent trust and partnership between Dalmia and KKR in the last five-years. We have been benefitted tremendously from KKR’s global network, strategic expertise and experience in value creation. Post the investment by KKR, the Company has successfully completed four acquisitions, greenfield expansions and implementation of environmentally sustainable production processes in a cost effective manner. DBL now has presence in South, East, North-East and Western markets of India.”

The transaction is subject to regulatory approvals and other customary closing conditions.

About DBL
Dalmia Bharat Limited (DBL) is a pioneer in cement manufacturing for over seven decades since 1939. With an expanding India footprint, the company is a category leader in all kinds of cement including super-specialty cements used for oil well, railway sleepers and air strips. Dalmia Bharat Group has a strong foothold in southern and eastern India (including north east India). The Company continues to produce best quality cement at lowest cost; maximizing efficiencies and observing high thresholds of sustainability. The Group with current capacity of 25 million tonnes, is one of the largest in the Indian cement industry. Visit us at https://www.dalmiabharat.com

About KKR
KKR is a leading global investment firm that manages investments across multiple asset classes including private equity, energy, infrastructure, real estate, credit and hedge funds. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation at the asset level. KKR invests its own capital alongside its partners' capital and brings opportunities to others through its capital markets business. References to KKR's investments may include the activities of its sponsored funds. For additional information about KKR & Co. L.P. (NYSE:KKR), please visit KKR's website at www.kkr.com and on Twitter @KKR_Co.