Jaiprakash Associates to sell cement units
Media reports indicate that Jaiprakash Associates may soon sell its 4.8-million-tonne cement plants in Gujarat to UltraTech Cement for Rs 4,100 crore.
Of the enterprise value of Rs 4,100 crore, Rs 1,800 crore comprise of debt. As of December 2012, the debt of Jaypee group, which has interests in power, real estate and hospitality, had a debt of Rs 45,000 crore.
The talks between both the firms on this matter is said to be in the advanced stage. UltraTech, the Aditya Birla Group company, is India's second-largest cement producer.
Both the firms are said to have finalised the valuation and other critical aspects, such as the indemnity amount.
Some analysts feel that the management of Jaypee indicated a debt reduction of Rs 6,000-6,500 crore by selling the cement plants in Gujarat for Rs 4,500 crore and the rest from (sale of) land parcels.