Dalmia Bharat Ltd announced the acquisition of Jaypee Group’s flagship company Jaiprakash Associates Ltd and its subsidiary firms for Rs 5,666 crore in cash.
Details about Dalmia Bharat would pay Rs 5666 crore for Jaypee Group’s cement assets
Dalmia Bharat announced in a regulatory filing that its wholly-owned subsidiary Dalmia Cement Bharat Limited (DCBL) had signed a “binding framework agreement for the acquisition of clinker, cement, and power plants from Jaiprakash Associates Limited and its associate firm.”
The transaction includes a total cement capacity of 9.4 million tonnes (MnT) per year, as well as a clinker capacity of 6.7 MnT and 280MW thermal power plants, with an enterprise value of Rs 5,666 crore.
“These assets are located in Madhya Pradesh, Uttar Pradesh, and Chhattisgarh,” Dalmia Bharat explained.
The acquisition would allow Dalmia to grow its presence in the central region, according to the company.
Furthermore, it will “mark a critical step towards realizing its aim of emerging as a pan-India cement company with a capacity of 75 MnT by FY27 and 110-130 MnT by FY31,” according to the company.
The transaction is subject to due diligence, approvals from Jaiprakash Associates Limited’s lenders/JV partner, and regulatory authorities, according to the company.
Jaypee Power Ventures announced last week that a board meeting will be held on Monday to evaluate a proposal to sell its Nigrie cement grinding plant in Madhya Pradesh.
Separately, Jaypee Group flagship firm Jaiprakash Associates announced that a board meeting will be held on Monday to update the board on the audit committee’s recommendations and progress on the different divestment plans.
Jaiprakash Associates Ltd (JAL) currently has a capacity of approximately 6 million tonnes per annum (MTPA), whereas Jaiprakash Power Ventures Ltd has a capacity of approximately 4 MTPA.
Jaiprakash Associates and Jaiprakash Power Ventures revealed plans in October to divest their cement company as well as several non-core assets in order to decrease debt.