Dalmia Bharat to acquire Jaypee Group’s cement assets for Rs 5,666 crore

• 12-Dec-2022
• 278

The Jaypee Group on Monday said that a binding agreement had been signed to sell the group’s cement business to Dalmia Cement (Bharat) Ltd at an enterprise value of Rs 5,666 crore.The binding agreement has been signed by Jaiprakash Associates and Jaiprakash Power Ventures.The divestment includes cement plants with an aggregate capacity of 9.4 million tonne, clinker assets with a capacity of 6.7 million tonne, and 280 MW capacity thermal power plant, the Jaypee Group companies said in a release.Proceeds from the divestment of the cement assets to Dalmia Bharat will be primarily used to repay Jaiprakash Associates’ debt This is the second asset sale deal clinched by debt-laden Jaiprakash Associates NSE 9.81 % with the Dalmia Group. The company had sold controlling stake in cement units with total capacity of 2 million tonne per annum (MTPA) to the Dalmia Group in 2015. The group has been taking several steps to reduce debt to stave off an insolvency bid by its lenders.Between 2014 and 2017, Jaiprakash Associates divested cement assets of more than 20 MTPA capacity to UltraTech Cement.