Dalmia Bharat on Wednesday said it has executed definitive agreements with debt-ridden Jaiprakash Associates Ltd (JAL) to acquire the latter’s cement assets according to an earlier announcement.
Dalmia Cement (Bharat) Ltd (DCBL), a subsidiary of Dalmia Bharat, on Tuesday, executed definitive agreements with JAL for the acquisition of JP Super Cement plant in Uttar Pradesh at an enterprise value of Rs 1,500 crore and costs and expenses of up to Rs 190 crore.
However, this will be subject to various clearances and approvals related to the JP Super plant and mines, said a regulatory update from Dalmia Bharat Ltd (DBL).
Moreover, it is also subject to “fulfilling certain conditions precedent, including the outcome of the pending arbitration between JAL and UltraTech Cement Ltd”.
On December 12, 2022, DBL announced that it will acquire the cement assets of Jaypee Group’s flagship company JAL and its associate firm at an enterprise value of Rs 5,666 crore. As part of that, DCBL also executed a share purchase agreement on Tuesday for the acquisition of 74 per cent shareholding of Bhilai Jaypee Cement Ltd (BJCL) at an enterprise value of Rs 666 crore.
“DCBL is in the process of signing a long-term lease agreement (having a term of seven years) with Jaiprakash Power Ventures for its Nigrie cement Grinding Unit of 2 million MTPA (Nigrie Unit) located at Singrauli in Madhya Pradesh, which is subject to fulfilment of certain conditions precedent,” it said.