All cash deal: Rajesh Exports just bought the world’s largest gold refining

Jewellery company Rajesh Exports Ltd on Monday said that it has bought Valcambi, the world’s largest gold refining company, in an all-cash deal worth $400 million.

Valcambi refinery is accredited by the London Bullion Market Association (LBMA) and Valcambi gold bars are accepted as good delivery bars across all official commodity exchanges in the world including COMEX (Chicago Commodities Exchange), NYMEX (New York Commodities Exchange), TOCOM (Tokyo Commodities Exchange), Shanghai Gold Commodities Exchange, DMCC (Dubai Multi Commodities Exchange) and MCX (Multi Commodities Exchange, India).

The deal will assist it safe uncooked materials provides and can add to earnings per share, the corporate stated.

“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 Dollars 400 million”, Rajesh Export said in a BSE filing. Post that, the bank sold the refining firm to Newmont Mining Corporation, US-based gold mining giant, and to several Swiss investors (including former founders) to focus on its core banking business.

Valcambi’s senior management team, including chief executive Michael Mesaric, will join Rajesh Exports to aid the ownership transition and future expansion, the Indian company said.

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

Early this year, the company said it is getting into the gold finance business through which it would become the first large jewellery firm to get into the gold loan business. Credit Suisse Group AG is part financing the acquisition through long-term debt, according to the statement.