The Board of Directors of UltraTech Cement Limited, an Aditya Birla Group company, agreed to the acquisition of the following cement businesses of Jaiprakash Associates Limited in Madhya Pradesh today:
- Integrated cement plant with clinker capacity of 2.1 million tpy and cement grinding capacity of 2.6 million tpy at Bela, Madhya Pradesh (MP).
- Integrated cement plant with clinker capacity of 3.1 million tpy and cement grinding capacity of 2.3 million tpy at Sidhi, MP.
- 180 MW TPP of which 25 MW is situated at Bela and 155 MW at Sidhi.
This acquisition will create significant synergies and the surplus clinker will enable UltraTech to augment its cement capacity by a further 1.8 - 2.5 million tpy in addition to the 4.9 million tpy mentioned above. This acquisition will enable the company to increase its presence in the Satna cluster of MP.
The Board has approved the Memorandum of Understanding setting out the broad terms and conditions of the proposed acquisition. The Enterprise Value of this acquisition has been agreed at Rs.5400 crores.
The transaction is subject to customary due diligence, definitive agreements, and regulatory approvals as may be required.
With this acquisition, the company’s cement capacity in India will increase from approximately 60 million tpy to approximately 65 million tpy and with projects underway, the capacity will stand raised to approximately 71 million tpy by 2016.
Adapted from press release by Joe Green
Read the article online at: https://www.worldcement.com/asia-pacific-rim/23122014/ultratech-cement-limited-acquire-cement-units-jaiprakash-66/