New Delhi: Billionaire Gautam Adani controlled Adani Group People familiar with the matter said that talks are on with debt-ridden Jaiprakash Power Ventures Ltd to buy cement units.
The port-to-power group could pay about $606 million for the cement grinding unit and other smaller assets, said one of the people, asked not to be identified because the information is private.
The acquisition will be done by one of the cement units recently acquired by Asia’s richest man, the people said, an announcement expected earlier this week. People said that although the discussion is progressing, they may be delayed or separated. News channel ET Now previously reported the deal without disclosing any value.
The deal will help cement Adani Group’s sudden dominance in the cement sector, which began in May after buying Ambuja Cements Ltd and ACC Ltd from Holcim Ltd of Switzerland, almost overnight India’s second with an installed production capacity. Became the largest cement manufacturer. 67.5 million tonnes annually.
Adani Group representatives declined to comment. Representatives for Jaiprakash Associates were not immediately available for comment.
The cement grinding facility has a capacity of 2 million tonnes per annum. It started functioning in October, 2014 at Nigri in the central Indian state of Madhya Pradesh.
According to a filing to the stock exchange on Monday, the board of Jaiprakash Associates has decided to sell the company’s “critical” cement business to help lower debt. Separately, Jaiprakash Power Ventures said its board is looking to sell the Nigri Cement grinding unit, as well as other non-core assets, to name any potential buyer.
The port-to-power group could pay about $606 million for the cement grinding unit and other smaller assets, said one of the people, asked not to be identified because the information is private.
The acquisition will be done by one of the cement units recently acquired by Asia’s richest man, the people said, an announcement expected earlier this week. People said that although the discussion is progressing, they may be delayed or separated. News channel ET Now previously reported the deal without disclosing any value.
The deal will help cement Adani Group’s sudden dominance in the cement sector, which began in May after buying Ambuja Cements Ltd and ACC Ltd from Holcim Ltd of Switzerland, almost overnight India’s second with an installed production capacity. Became the largest cement manufacturer. 67.5 million tonnes annually.
Adani Group representatives declined to comment. Representatives for Jaiprakash Associates were not immediately available for comment.
The cement grinding facility has a capacity of 2 million tonnes per annum. It started functioning in October, 2014 at Nigri in the central Indian state of Madhya Pradesh.
According to a filing to the stock exchange on Monday, the board of Jaiprakash Associates has decided to sell the company’s “critical” cement business to help lower debt. Separately, Jaiprakash Power Ventures said its board is looking to sell the Nigri Cement grinding unit, as well as other non-core assets, to name any potential buyer.