Jaiprakash Associates shareholders approve sale of cement biz
In a regulatory filing, JAL conveyed the outcome of the court-convened meeting of the equity shareholders held on October 22, 2016.
The shareholders approved "the Scheme of Arrangement (merger) between Jaiprakash Associates (JAL) and Jaypee Cement Corporation (JCCL) and UltraTech Cement and their respective shareholders and creditors". According to the deal, UltraTech will pay Rs 16,189 crore to buy the Jaypee Group's cement operations that have a total capacity of 17.2 MTPA spread across Uttar Pradesh, Madhya Pradesh, Himachal Pradesh, Uttarakhand and Andhra Pradesh.
In addition, it will acquire a 4 MTPA grinding unit being constructed in Uttar Pradesh. Of this, 11.2 MTPA capacity is in central India, 5 MTPA in coastal Andhra Pradesh and 4.8 MTPA in Himachal Pradesh.
While presenting the July-September quarter results, UltraTech said: "(The) transaction is expected to complete in the next five-six months."
It added that approval from the Competition Commission of India (CCI) has been received and the next step involves seeking approval from the concerned High Court and the final approval from capital markets regulator SEBI.