UltraTech Cement to raise bid for Binani by Rs 700 crore ...

UltraTech Cement to raise bid for Binani by Rs 700 crore

Aditya Birla Group-owned UltraTech Cement will increase its bid for Binani Cement by Rs 700 crore to Rs 7,200 crore, even as the bankrupt company’s committee of creditors on Wednesday approved the offer by a consortium of Dalmia-Piramal and Bain.
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UltraTech Cement

“I would have bid for this value earlier only had we been invited by the resolution professional on our requests, since the margin between the highest and second-highest bidders was very less,” UltraTech chief financial officer Atul Daga told ET.

The company has emailed the resolution professional (RP) about the decision to increase the bid, but has yet to receive a response, he said.

UltraTech, India’s largest cement maker by capacity, is putting in the fresh bid after its requests to consider for the final round of bidding along with Dalmia Bharat went unheeded by lenders and the RP, the official appointed by the National Company Law Tribunal to manage the debt resolution process.

The company had moved the NCLT Kolkata on Tuesday seeking a more transparent way to evaluate bids. On hearing the petition, the judge told UltraTech that the company was “trying to stall the process” by pleading to the bankruptcy court for a “more transparent way of evaluating bids”.

“This higher bid shows that we are a serious bidder and we are not trying to stall the process,” said Daga.

“I would have bid for this increased value had we been invited by the RP earlier when we had requested him to do so.”

The company said it should be invited as the lenders are obliged under law to maximise the value of the transaction. The fresh bid has offered to repay the debt of the unsecured creditors of Binani Cement with an additional Rs 500 crore to various vendors and equipment suppliers.

Info- realty.economictimes.

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