 "Deal cemented: UltraTech buys Jaypee's Guj Cement for Rs 3,800 cr")
Aditya Birla Group firm UltraTech Cement today confirmed that it will acquire Gujarat Cement unit of Jaypee Cement Corp for Rs 3,800 crore.
UltraTech Cement will acquire the Gujarat Cement Unit of Jaypee Cement Corp Gujarat Cement Unit comprises of an integrated cement unit at Sewagram and grinding unit at Wankbori, the company said in a statement.
The combined capacity of both the divisions is 4.8 million tonnes along with 57.5 MW coal-based thermal power plant, limestone reserves of over 90 years at current capacity and a captive jetty at Sewagram.
[caption id=“attachment_1102055” align=“alignright” width=“380”]  UltraTech Cement Chairman Kumar Mangalam Birla[/caption]
“With this acquisition of 4.8 million tonnes per annum, the company’s current capacity increases to 59 million tonnes per annum. With projects underway it will stand raised to 70 million tonnes by 2015,” UltraTech Cement Chairman Kumar Mangalam Birla said.
Putting an enterprise value of Rs 3,800 crore on Gujarat Cement Unit, UltraTech said it will issue equity to the shareholders of Jaypee Cement.
The proposed transaction is subject to approval of shareholders and creditors, sanction of the Scheme of Arrangement by the High Courts, approval of the Competition Commission of India besides other statutory approvals.
Talking about the company’s debt, Executive Chairman of Jaypee group Manoj Gaur said monetization of Gujarat cement plant is the first step towards debt reduction, which will go down by 15 percent post the deal with Ultratech.
Impact Shorts
More ShortsHe said it can be reduced by another Rs 15000 crore by monetising cement, thermal and hydro assets. Jaypee’s has a total debt of 23000 crore barring power projects. Its gross debt of all businesses stands at Rs 55000-56000 crore.
With inputs from PTI
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