Rajesh Exports acquires gold refinery Valcambi for USD 400 mn

Jewellery firm Rajesh Exports today fully acquired Switzerland-headquartered gold refinery Valcambi for USD 400 million (approx Rs 2,560 crore) in an all cash deal.

"Rajesh Exports Ltd (REL) through its wholly-owned subsidiary in Singapore has fully acquired European Gold Refineries, the 100 per cent holding company of Valcambi in an all cash deal with a total investment of USD 400 million," Rajesh Export said in a BSE filing.

Valcambi was owned by Newmont mining corporation and a group of Swiss investors.

Commenting on the acquisition, Rajesh Exports Ltd Chairman Rajesh Mehta said: "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."

"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," he added.

The company said that with Valcambi acquisition, REL will become an integrated player covering precious metal refining and gold jewellery making.

On the deal, Valcambi CEO Michael Mesaric said: "The coming together of REL and Valcambi would ensure that Valcambi improves on its global share of gold business, by opening up new markets in India, Middle East and China."

The company said Grant Thorton assisted Rajesh Exports in due diligence and Credit Suisse is part financing the acquisition through a long term debt.

Rajesh Exports said for the last three years on an average per year Valcambi generated revenues in excess of USD 38 billion (Rs 2,36,500 crore) by refining and selling 945 tons of gold and 325 tons of silver per year.