Aditya Birla Group firm UltraTech Cement said it will acquire debt-laden Jaiprakash Associates’ cement arm Jaypee Cement’s Gujarat plant in a deal valued at Rs 3,800 crore. The transaction is expected to close in 7-9 months.
Also Read: UltraTech deal will pare co's debt by 15%: Jaypee Group"With this acquisition of 4.8 million tonnes per annum, the company's current capacity increases to 59 million tonnes per annum. With projects underway it will stand raised to 70 million tonnes by 2015," UltraTech Cement Chairman Kumar Mangalam Birla said.
Jaiprakash Associates plans to reduce its debt by Rs 15,000 crore in the current fiscal year ending March 31, 2014, executive chairman Manoj Gaur said. Jaiprakash, with its subsidiaries, has a total debt of Rs 55,000-56,000 crore, he said.
To know what HM Bangur, MD, Shree Cements; SP Tulsian, sptulsian.com; Mihir Jhaveri, Analyst, Religare Capital Markets; and Rajesh Kumar Ravi, Senior Research Analyst, Karvy Stock Broking feel about the deal, watch the videos attached below.
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