Orient Cement,JP Group,CK Birla Group,Jaiprakash Associates,Bhilai Jaypee Cement Ltd,BJCL

Orient Cement To Buy Two Units Of JP Group For Rs 1,950 Crore

Orient Cement To Buy Two Units Of JP Group For Rs 1,950 Crore

Orient Cement on Thursday mentioned it’s going to acquire two cement vegetation of debt-encumbered JP group for Rs 1,950 crore in an all-money deal, a transfer so one can help the CK Birla staff organization enter primary and eastern regions of the nation.

Orient Cement said it’s going to collect Jaiprakash associates’ seventy-four per cent stake in Bhilai Jaypee Cement Ltd (BJCL) for an organization value of Rs 1,450 crore, which is on a cash-free, debt-free basis and is a field to changes due to working capital, if any, it stated in an announcement.

Apart from, the company additionally inked a deal to acquire Nigeria Cement Grinding unit from Jaiprakash vigor Ventures Ltd (JPVL) for an organization value of Rs 500 crore that can also be on a cash-free, debt-free basis and is a field to changes on account of working capital, if any, it delivered.

BJCL, a Joint enterprise between JAL and steel tremendous SAIL, has a built-in percent cement capacity of 2.2 million tons every year (MTPA) together with a linearization unit in Satna Madhya Pradesh and a grinding unit in Bhilai, Chhattisgarh.

The Nigeria unit in Singrauli, Madhya Pradesh is a cement grinding unit with a potential of 2 MTPA and is located very virtually the tip markets in Bihar, Jharkhand and jam Uttar Pradesh (UP).

BJCL’s acquisition will provide the organization with excessive first-class assets taking its whole ability from eight MTPA to 10.2 MTPA and will furnish entry into the excessive development principal and eastern regions, Orient Cement mentioned.

The company will even improvement from BJCL’s entry to limestone reserves and different uncooked materials including slag, it brought.
Whereas, the acquisition of the Nigeria unit provides Orient Cement with a high pleasant asset at the strategically good located region. The operational asset provides a ready to market potential for Orient Cement and in addition complements, its asset portfolio, put up the transaction, it mentioned.

Commenting on BJCL’s acquisition, CK Birla workforce chairman CK Birla said: “the present thought to accumulate BJCL from JAL is an enormous step closer to carrying out our present mission of accomplishing a capacity of 15 MTPA by way of 2020.”

The property proposed to be obtained will also add a brand new and robust dimension in the direction of diversifying the corporation’s market reach and serving to Orient Cement to extra sweat its existing assets, he brought.

Orient Cement CEO and managing director Deepak Khetrapal mentioned: “Nigeria grinding unit is a very good match for our growth and market diversification technique.”

“It’s shut proximity to growing markets and availability of power, fly-ash, and infrastructure of the adjoining super thermal vigor plant of JPVL provides us a possibility to arrive these markets very efficaciously.”

Moelis & corporation is the monetary marketing consultant, even as Cyril Amarchand Mangaldas is the legal assistance to Orient Cement for each the deals.

At the reward, the firm has 8 MTPA potential across three items in states of Telangana, Maharashtra, and Karnataka.

Image source : vanillanews.com

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