Dalmia Bharat to acquire JP Associates' select cement, clinker and power plants

Dalmia Bharat had inked framework agreements with JP Associates in Dec 2022 and Feb 2023

Dalmia Bharat on April 26 said it will acquire select cement, clinker and power plants of JP Associates, with whom it had inked binding agreements in December 2022 and February this year.

The agreements were "executed on April 25", a regulatory filing stated, adding that this allowed Dalmia Cement, a subsidiary of Dalmia Bharat, to acquire JP Super at an "enterprise value of Rs 1500 crore, and costs and
expenses up to Rs 190 crore".

The acquisition, however, is subject to the final outcome of the pending arbitration between JP Associates Limited and Ultratech Cement, it clarified.

Also Read | Dalmia Bharat Q4 net profit rises two-fold to Rs 609 crore, revenue up 16% to Rs 3,912 crore

Dalmia Cement also executed the the share purchase agreement for acquisition of "74 percent shareholding" of Bhilai Jaypee Cement Limited (BJCL), a unit of JP Associates, for an "enterprise Value of Rs 666 crore", as per the exchange filing.

Furthermore, Dalmia Cement has signed a long-term lease agreement, having a term of seven years, with Jaiprakash Power Ventures Ltd for its Nigrie Cement Grinding Unit of two million MTPA located at Singrauli in the State of Madhya Pradesh.

The company has the "option to purchase the Nigrie Unit anytime within the lease period at an Enterprise Value of Rs 250 crore"," the filing stated.

Following the announcement, the shares of Dalmia Bharat inched marginally higher at the stock market, and peaked to Rs 1,943 apiece on the BSE at 2:45 pm, which was around 1 percent higher as against the previous day's close.