Reliance Infrastructure Ltd has announced that it is in advanced talks to sell its cement business for US$394 million and a deal could be announced this week.
The buyer would also take over the cement unit’s outstanding debt of 24 billion rupees under the terms of the deal, giving the business an enterprise value of 50 billion rupees.
Reliance Infrastructure’s cement unit has three plants with a total installed capacity of 5.8 million tpy. Another 5 million tpy cement manufacturing plant is being developed in western Maharashtra state.
A consortium, which includes some private equity firms, is likely to emerge as the successful bidder for the unit.
New research by GlobalData’s MEED has shown that the commercial value of construction contracts issued in the Gulf Cooperation Council (GCC) fell by more than 50% in the first eight months of 2020 compared to the same period in 2019.