National Company Law Tribunal (NCLT) consent Jaiprakash Associates to shift its cement plants to Aditya Birla group cement subsidiary firm UltraTech Cement on Friday.
The company said in a BSE filing that NCLT Allahabad bench has approved the proposal made by the company to transfer its identified cement plant and its wholly owned subsidiary M/s Jaypee Cement Corporation to M/s UltraTech Cement on slump exchange basis.
Announcement was made last year by JP Associates for sale of its cement business to the Kumar Mangalam Birla-led Ultratech for around Rs 16,000 crores, marking the biggest consolidation in the cement sector.
The agreement will help reduce the debt incurred by Jaypee Group firm, which accounted to thousands of crores of rupees. The deal was subjected to various regulatory approvals.
The group’s cement operations have a total capacity of 17.2 million tonnes per annum (MTPA) spread across Uttar Pradesh, Madhya Pradesh, Himachal Pradesh, Uttarakhand and Andhra Pradesh.
News Sources: economictimes.indiatimes.com
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