India’s UltraTech buys Jaiprakash cement plants in new $2.4 b deal

Monday, 4 April 2016 00:00 - - {{hitsCtrl.values.hits}}

Reuters: India’s UltraTech Cement Ltd (ULTC.NS) will buy Jaiprakash Associates Ltd’s (JAIA.NS) cement plants for INR 159 billion ($2.4 billion) including debt, the companies said in a revised deal unveiled on Thursday.

The two firms had signed an accord last month under which UltraTech was to buy 22.4 million tons of cement capacity from Jaiprakash for INR 165 billion, including debt.

Under the revised deal, UltraTech will buy 21.2 million tons of cement capacity from Jaiprakash as the companies have mutually agreed to exclude a 1.2 million tons a year plant in the southern state of Karnataka, they said in separate filings.

UltraTech, part of the Aditya Birla conglomerate, will have a total capacity of 91.1 million tons after the deal, which is expected to take about a year to consummate.

Jaiprakash has been selling assets to pare its debt. After the latest sale, it will retain cement plants with a total capacity of 10.6 million tons, it said.

ICICI Bank (ICBK.NS), India’s biggest private sector lender and which counts Jaiprakash among its major clients, said in a separate statement it was working with the company to further reduce its debt burden.