CK Birla Group firm, Orient Cement Ltd would acquire two entities, Bhilai Jaypee Cement and Nigrie Cement Grinding Unit, from Jaypee group firms for a total consideration of ₹ 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 % share of Bhilai Jaypee Cement (BJCL) from Jaiprakash Associates Ltd (JAL) and its nominee for a total enterprise value of Rs 1,450 crore. Nigrie Cement Grinding Unit would be acquired as going concern from Jaiprakash Power Ventures (JPVL) for a total consideration of ₹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 ₹ 399.27 crore. Singrauli, Madhya Pradesh—based Nigrie Cement Grinding Unit has a production capacity of 2 MT. It had a turnover of ₹90.70 crore in 2015—16. However, the company requires “approval of the government of Madhya Pradesh for transfer of land. JPVL is a power generation company with a capacity of 2,220 MW comprising one hydro and two thermal power plant.
Image source: YouTube