​India: JP Associates seeks to call off cement biz sale to UltraTech Cement

Byszheng

Updated Tue, 05 Jul 2016 09:27:22 GMT

In a new twist in the JP Associates-UltraTech Cement deal, the former now wants to call off the Rs 15,900 crore deal to sell its Cement business to the latter, ET Now quoted sources as saying. 

Shares of JP Associates closed 5.40 per cent higher at Rs 9.09 in reaction to the development, while those of UltraTech CementBSE -0.46 % ended lower by 0.43 per cent at Rs 3411.90 on Monday. 

UltraTech Cement claimed, "the agreement was binding and under implementation". 

"UltraTech wants to ensure Gaur honours the binding agreement signed in February," sources told ET Now. 

India's largest cement maker UltraTech Cement had acquired JP's cement businesses in six states for an enterprise value of Rs 15,900 crore back in February. 

However, Jaypee is learnt to be lobbying with banks for a deeper restructuring of its debt, and hopes to turn around its cement business on the back of new corporate debt restructuring norms released by the Reserve Bank of India earlier this month.