Aditya Birla Real Estate Limited (ABREL) has announced that it will sell its Pulp and Paper plant in Lakuan, Uttarakhand, to ITC Limited for ₹3,498 crore.
This divestment of the Pulp and Paper business is intended to unlock value for ABREL, allowing the company to focus on expanding its core real estate business, as stated in a press release.
Managing Director of ABREL, RK Dalmia said, "The divestment of the Pulp and Paper undertaking by ABREL, is a strategic portfolio choice and unlocks value for the shareholders of ABREL. The company has embarked on a transformational growth phase, and this move will further sharpen its focus on real estate to drive sustained value creation "
The lump sum payment will be adjusted as per the terms of the agreement. The deal depends on getting the necessary legal and regulatory approvals, including from the Competition Commission of India (CCI) and the shareholders.
“Over the years, CPP has become synonymous with strong performance and high sustainability standards. To take it to the next level in size and value, the company is pleased to have found in ITC, a credible and well-established player,” added Dalmia
JM Financial Limited served as the financial advisor, and AZ & Partners offered legal guidance to Aditya Birla Real Estate Limited (ABREL) for this deal.
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