Jaiprakash Associates in talks with Shree Cement
Reports indicate that Jaiprakash Associates is in talks to sell its 2.1 million t Bhilai Cement unit to Shree Cement for a sum of Rs.1800 crore. An unnamed source claims the deal is likely to take place this month, being already at an advanced stage. Neither Jaiprakash Associates or Shree Cement have commented on the reports.
Jaiprakash Associates has a heavy debt burden of around Rs.60 000 crore, which it is looking to reduce by selling assets. It has already divested assets to UltraTech Cement.
Although India was not on the list of countries in which either Lafarge or Holcim proposed divestments to secure their merger, it is being reported that the companies are looking at their assets in the country to determine what will need to be sold in order to secure approval for the merger by the Competition Commission of India. Meanwhile, UltraTech Cement, which is reported to be interested in the international assets of the two companies, has told the BSE that there is ‘no proposal which has reached the stage which would trigger Clause 36 of the Listing Agreement’, by which a company would have to inform the exchange of actions that might impact its performance. The group did acknowledge that it ‘evaluates various proposals on a regular basis’.
Prism Cement has reported a loss of Rs.197.60 million for the July – September quarter, compared with a profit of Rs.175.60 million in the same period of 2013. Net sales rose 15.38%, at Rs.13,377.70 million.
Edited from various sources by Katherine Guenioui
Read the article online at: https://www.worldcement.com/asia-pacific-rim/17102014/speculation-of-sales-and-acquisitions-in-indian-cement-industry-686/