Image has been used for representational purpose only. , Photo Credit: Nagra Gopal
Dalmia Bharat Ltd on Monday announced the acquisition of cement assets of Jaypee Group flagship company Jaiprakash Associates Ltd and its associate firms at an enterprise value of ₹5,666 crore.
In a regulatory filing, Dalmia Bharat informed that its wholly owned subsidiary Dalmia Cement Bharat Limited (DCBL) has entered into a binding framework agreement for the acquisition of clinker, cement and power plants from Jaiprakash Associates Limited and its associate company ”
The deal includes total cement capacity of 9.4 million tonnes (MT) per annum, clinker capacity of 6.7 MT and thermal power plant of 280 MW at an enterprise value of Rs 5,666 crore.
Dalmia Bharat said, ‘These properties are located in the states of Madhya Pradesh, Uttar Pradesh and Chhattisgarh.’
He added that the acquisition will help Dalmia to expand its reach in the central region.
Further, it will represent a significant step towards realizing its vision of emerging as a pan India cement company with a capacity of 75 MT by FY27 and 110-130 MT by FY31. “
The transaction is subject to due diligence, requisite approvals from the lenders/JV partner of Jaiprakash Associates Limited and regulatory authorities.
Jaypee Power Ventures last week informed that it will hold a board meeting on Monday to consider its proposal to sell Nigri Cement Grinding Plant in Madhya Pradesh.
Separately, Jaypee Group flagship firm Jaiprakash Associates informed that a board meeting was convened on Monday to apprise the board of the recommendations of the audit committee and the progress of various disinvestment initiatives.
Jaiprakash Associates Limited (JAL) currently has a total capacity of about 6 million tonnes per annum (MTPA) and Jaiprakash Power Ventures Limited has about 4 MTPA.
In October, Jaiprakash Associates and Jaiprakash Power Ventures announced plans to sell some non-core assets along with their cement business to reduce debt.