Jaypee to sell two cement units
CK Birla Group firm Orient Cement Ltd said it would acquire two entities, Bhilai Jaypee Cement and Nigrie Cement Grinding Unit, from Jaypee group firms for a total consideration of Rs 1,946 crore.
Orient Cement Ltd (OCL) has signed “definitive agreement” with the Jaypee group firms for all cash deals, which are expected to be completed before March 31, 2018, the company said in a BSE filing.
It would acquire 74 per cent share of Bhilai Jaypee Cement (BJCL) from Jaiprakash Associates Ltd (JAL) and its nominee for a total enterprise value of Rs 1,450 crore.
Besides, it would also acquire Nigrie Cement Grinding Unit as going concern from Jaiprakash Power Ventures (JPVL) for a total consideration of Rs 496 crore.
BJCL has a cement manufacturing capacity of 2.20 million tonnes (MT) and 1.10 MT of clinker. In 2015-16, it had a turnover of Rs 399.27 crore.
This would be “subject to adjustment on account of working capital and net debt of BJCL, which shall then be pro-rated to the shareholding of HAL in BJCL,” OCL informed.
“BJCL is in the same line of business as that of the company and the purpose of acquisition is to expand the business of the company to other parts of the company.”
While, Singrauli, Madhya Pradesh-based Nigrie Cement Grinding Unit has a production capacity of 2 MT. It had a turnover of Rs 90.70 crore in 2015-16.
However, the company requires “approval of the government of Madhya Pradesh for transfer of land,” the CK Birla Group firm said.
JPVL is a power generation company with a capacity of 2,220 MW comprising one hydro and two thermal power plant.