Dalmia Cement (Bharat) Ltd (DCBL), the wholly-owned subsidiary of Dalmia Bharat Ltd, on Monday entered into a binding framework agreement for the acquisition of cement assets of Jaiprakash Associates Ltd and its associate at an enterprise value of Rs 5,666 crore. The plants are located in Madhya Pradesh, Uttar Pradesh and Chhattisgarh.
“Dalmia Cement (Bharat) Limited (DCBL), wholly owned subsidiary of Dalmia Bharat Limited has today entered into a binding Framework Agreement for the acquisition of the cement, clinker and power plants from Jaiprakash Associates Limited and its associate having total cement capacity of 9.4 million tonnes (along with clinker capacity of 6.7 million tonnes and thermal power plants of 280 MW),” Dalmia Bharat said in a BSE filing.
The acquisition will enable Dalmia to expand its footprint into the central region and will represent a significant step towards realisation of its vision to emerge as a pan-India cement company with a capacity of 75 million tonnes by FY27 and 110‐130 million tonnes by FY31.
The transaction is subject to due‐diligence, requisite approvals from lenders/JV partner of Jaiprakash Associates Limited and regulatory authorities.
Jaypee Power Ventures had on last week informed that it will hold a board meeting on Monday to consider a proposal to divest its Nigrie cement grinding plant in Madhya Pradesh.
Separately, Jaypee Group flagship firm Jaiprakash Associates informed that a board meeting has been convened on Monday to apprise the board of the recommendations of the audit committee and the progress on the various divestment initiatives.
Jaiprakash Associates Ltd (JAL) presently has an aggregate capacity of around 6 million tonnes per annum (MTPA) and Jaiprakash Power Ventures Ltd has around 4 MTPA.
In October, Jaiprakash Associates and Jaiprakash Power Ventures had announced plans to divest their cement business as well as some non-core assets to reduce debt.
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