DALMIA India to buy JP Gruop’s cement business for Rs 5,666 crore
New Delhi. Dalmia Bharat Ltd. On Monday, Jayaprakash Associates Ltd., the flagship company of Jaypee Group. And announced the acquisition of cement business of associate companies.
The acquisition will be done at an enterprise value of Rs 5,666 crore. Dalmia Bharat said in a notice to the stock market that its wholly owned subsidiary Dalmia Cement Bharat Ltd. (DCBL) Jaiprakash Associates Ltd. And has entered into a firm agreement with its affiliated companies for the acquisition of clinker, cement and power plants.
The deal includes a cement unit of 9.4 million tonnes per annum capacity, 6.7 million tonnes of clinker capacity and a 280 MW thermal power plant. The deal has been done at an enterprise value of Rs 5,666 crore.
These properties are located in Madhya Pradesh, Uttar Pradesh and Chhattisgarh, Dalmia Bharat said. This acquisition will help Dalmia to increase its presence in the central region of the country. This is a significant step towards achieving the company’s vision of becoming a 75 million tonne cement company by FY 2026-27 and 11 to 130 million tonne capacity by 2030-31.
According to sources, Jaiprakash Associates Ltd., probing the deal. subject to approval from lenders/JV partner and regulatory authorities.
In a separate statement, Jai Prakash Associates said a meeting of the board of directors has been called on Monday. The meeting has been called to apprise the Board of Directors of the recommendations of the Audit Committee and to update them about the progress in various steps related to disinvestment.
The total capacity of Jaiprakash Associates is currently around 6 MTPA while that of Jaiprakash Power Ventures is 4 MTPA. It may be noted that Jaiprakash Associates and Jaiprakash Power Ventures had in October announced plans to sell some non-core businesses along with the cement business to reduce debt.
