Indian cement manufacturer Jaiprakash Associates Ltd has announced that it will sell its 74% stake in Bokaro Jaypee Cement Ltd, located in Jharkhand, India, to Dalmia Cement Bharat Ltd for approximately Rs.690 crore. The Bokaro Jaypee Cement plant is a joint venture company between Jaiprakash Associates and state-run SAIL (Steel Authority of India) and produces around 2.1 million tpa.
In a statement to the stock exchanges, the company noted that the board of directors had approved the signing of the share-purchase agreement with Dalmia Cement; however, the deal is subject to the approval of SAIL. According to the statement, the sale will take place at around Rs.69.74 per share.
Jaiprakash Associates is selling assets in India in a bid to reduce its US$10 billion debt, accumulated as the company sought to expand its businesses in the country. In September 2013, Jaiprakash Associates sold its 4.8 million tpa Gujarat plant to Ultratech Cement Ltd for a sum of approximately US$594 million.
Edited from various sources by Rosalie Starling
Read the article online at: https://www.worldcement.com/asia-pacific-rim/24032014/dalmia_cement_to_purchase_jaiprakash_associates_stake_in_bokaro_jaypee_cement_939/