UltraTech Cement to acquire cement units of Jaiprakash Associates

Bymc2008

Updated Tue, 01 Mar 2016 09:13:24 GMT

UltraTech Cement Limited has entered into a binding Memorandum of Understanding with Jaiprakash Associates Limited for the acquisition of its identified cement plants having total cement capacity of 22.4 million tpy situated in the states of Madhya Pradesh, Uttar Pradesh, Himachal Pradesh, Uttarakhand Andhra Pradesh and Karnataka.

The assets will give the company access to the newer markets of Satna, UP East, Himachal Pradesh and Coastal Andhra where it does not have a presence currently. Upon consummation of the proposed transaction the company’s cement capacity will stand augmented to 90.7 million tpy. The parties have agreed to an Enterprise Value of Rs.16 500 crore.

The transaction is subject to definitive agreements and regulatory approvals as may be required.