Mumbai: Valcambi is the world’s largest precious metal’s refining company headquartered at Switzerland. Valcambi has processed and sold 945 tons of Gold and 325 tons of Silver on an average per year during the last three financial years which is more than the annual consumption of gold in India.
Valcambi refinery is London Bullion Market Association (LBMA) accredited and Valcambi gold bars are accepted as good delivery bars across all the official commodity exchanges in the world like COMEX (Chicago Commodities Exchange), NYMEX (New York Commodities Exchange), TOCOM (Tokyo Commodities Exchange), Shanghai Gold Commodities Exchange, DMCC (Dubai Multi Commodities Exchange), MCX (Multi Commodities Exchange, India) etc.
Since the last 53 years Valcambi has been a consistently profit making and dividend paying company. For the last three years on an average per year Valcambi generated revenues in excess of USD 38 Bln (INR 2,36,500 Crores) and EBITDA of USD 33 Mln (INR 205 Crores) by refining and selling 945 tons of Gold and 325 tons of Silver per year. Valcambi is a Zero debt company with considerable cash surplus on its balance sheet. KPMG is Valcambi’s Auditor and has been auditing the company for more than 40 years.
Valcambi was owned by Newmont mining corporation and a group of Swiss investors. Newmont is one of the world’s biggest gold and copper mining company and is listed on the New York stock exchange since 1925 and is a part of S&P 500 Index. The owners of Valcambi conducted a global search for divesting Valcambi, after an extensive search selected Rajesh Exports to acquire Valcambi.
Rajesh Exports Limited (REL) through its wholly owned subsidiary in Singapore has fully acquired European Gold Refineries, the 100% holding company of Valcambi in an all cash deal with a total investment of USD 400 Million. Grant Thorton assisted Rajesh Exports in due diligence and Credit Suisse is part financing the acquisition through a long term debt.
Mr. Michael Mesaric a globally recognized authority in gold industry and the current CEO of Valcambi, along with his entire senior management has agreed to be a part of REL for smooth transition and future expansion. With Valcambi acquisition, REL will become an integrated player covering precious metal refining & gold jewellery making. Valcambi acquisition will be EPS accretive for REL.
Commenting on the acquisition Mr. Emilio Camponovo, the founder and current major shareholder of Valcambi said, “More than the price of sale, my aim was to deliver the company to a buyer who would maintain its world class standard and stature. I am confident that under the leadership of Rajesh Exports, Valcambi will keep up its excellence and would continue to grow and increase its share in the global gold business.”
Mr. David Faley, Vice President, Newmont Mining Corporation said, “We have long term contracts with Valcambi for refining the gold produced from a number of our mines primarily due to the trust, credibility and global standards of Valcambi. We are pleased that Valcambi is being acquired by Rajesh Exports with whom we are continuing our long term refining contracts and we are confident that Rajesh Exports will maintain the high standards of Valcambi”
Mr. Michael Mesaric, CEO, Valcambi said “The coming together of REL and Valcambi would ensure that Valcambi improves on it’s global share of gold business, by opening up new markets in India, Middle East and China. Valcambi would also focus on forward integration and on innovative gold products in the European markets, by utilising the technical expertise of Rajesh Exports Limited. The team of Valcambi will continue to deliver quality performance in its products and numbers under the able and proven leadership of Rajesh Exports Limited.”
Mr. Rajesh Mehta, Chairman, Rajesh Exports Limited said “This is a historic moment for REL and for the global gold business. 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. The acquisition is also of national importance for India, as India is the largest consumer of gold in the world, it would be a step in the right direction by an Indian company to own a world class asset like 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.”