India’s National Company Law Tribunal (NCLT), which overseas the management of distressed companies, has approved Dalmia Cement’s acquisition of bankrupt Kalyanpur Cement Ltd (KCL), under a proposal to revive the company.
Dalmia Cement will pay INR 3.53 billion for KCL, which owns the only integrated cement plant in the Indian state of Bihar in the northeast of the country. The 1.1 million tpy plant has been mothballed since August 2017 due to working capital constraints at KCL.
KCL was referred to the NCLT in May 2017 with debts of INR6 billion. The company reported a loss of INR0.95 million in the last financial year.
The acquisition would “further consolidate our cement footprint in Eastern region and provide us enhanced synergy benefits,” Dalmia Cement, which is part of the Dalmia Bharat Ltd industrial conglomerate, said in a statement.
Elsewhere, Dalmia Bharat has also received shareholder approval for the amalgamation of various of its subsidiaries in eastern India, including Dalmia Cement East Ltd and OCL India, into one company, ODCL.
“This brings us one step closer to our objective of simplifying the group structure and creating one listed entity,” said Jayesh Doshi, Group CFO and Whole Time Director of Dalmia Bharat Ltd.
The proposal now goes to the NCLT for approval, which is expected within three months.
Read the article online at: https://www.worldcement.com/indian-subcontinent/07022018/dalmia-gets-nclt-approval-for-kcl-acquisition/