UltraTech Cement
is learnt to be in talks to buy Jaypee Group's cement business in
Ahmedabad, exclusive sources told CNBC-TV18. The deal is valued at
around USD 700-890 million which is likely to close by year-end.
The proceeds would be used to meet capacity expansion and retire debt, among others.
Shares of UltraTech and JP rose over 3% to Rs 46.35 and Rs 98.45 following the stake sale news.
However, both companies have not confirmed the development.
While UltraTech is keen to buy Jaypee's 4.8 million tonnes per annum (mtpa) Gujarat capacity at USD 160-165/tonne, Jaypee want to sell it at USD 180-185/tonne.
The Jaypee Group, having interests in areas such as real estate, cement and hospitality, is the country's third largest cement maker with an installed capacity of 33.5 mtpa.
Jaiprakash Associates , the flagship company of the Group, holds the majority of the cement business. However, operations in Gujarat and Andhra Pradesh, having a total capacity of 9.8 mtpa, are under the aegis of Jaypee Cement, which was hived off six months ago for monetising the asset.
UltraTech Cement is a part of the $24.5 billion diversified Indian conglomerate - Aditya Birla Group. The company along with its subsidiaries have an annual capacity of 52 million tonnes of cement manufacturing.
The proceeds would be used to meet capacity expansion and retire debt, among others.Shares of UltraTech and JP rose over 3% to Rs 46.35 and Rs 98.45 following the stake sale news.
However, both companies have not confirmed the development.
While UltraTech is keen to buy Jaypee's 4.8 million tonnes per annum (mtpa) Gujarat capacity at USD 160-165/tonne, Jaypee want to sell it at USD 180-185/tonne.
The Jaypee Group, having interests in areas such as real estate, cement and hospitality, is the country's third largest cement maker with an installed capacity of 33.5 mtpa.
Jaiprakash Associates , the flagship company of the Group, holds the majority of the cement business. However, operations in Gujarat and Andhra Pradesh, having a total capacity of 9.8 mtpa, are under the aegis of Jaypee Cement, which was hived off six months ago for monetising the asset.
UltraTech Cement is a part of the $24.5 billion diversified Indian conglomerate - Aditya Birla Group. The company along with its subsidiaries have an annual capacity of 52 million tonnes of cement manufacturing.
No comments:
Post a Comment