JAL to sell Bokaro cement unit share to Dalmia for Rs 690 crore
The Jaiprakash Associates group with a total debt of over R60, 000 crore, recently announced that they are going to sell 74 percent of its holding to Dalmia Bharat.
The total amount collected by JP associates from this deal is around Rs 690 crore.
It is concluded in a statement that the board of directors of Jaiprakash Associates Limited (JAL) has approved the share Purchase Agreement with Dalmia Cement (Bharat) Limited for sale of 74 percent share in the paid-up equity share capital of Bokaro Jaypee Cement Limited.
The spokesperson of Dalmia Bharat refused to comment on this deal.
The JP Associates which is the third largest cement producer of India with the total producing capacity of 33.30 mtpa has been in talks for selling 74 percent of its share to Dalmia Bharat.
As per the source, the board of directors will be going to meet on Monday to discuss the sale of 74 percent in joint venture subsidiaries. The 74 percent share sale in its .2 mtpa Bhilai JV plant has not been taken.
This share sale is the Jaypee Group’s second asset sale during the period of 1 Month and fourth sale during this financial year to reduce its large debt burden.
The JP Associates had entered in to agreement with Ultratech to sell its two cement facilities in Gujarat with total capacity of 4.8mtpa for the worth of Rs 3,800 crore in September 2013. Before that in May 2013, the JP group sold its 300 acre land at Greater Noida to Gaursons for Rs 1,500 crore. The stock of JP Associates has increased by 3.62 percent in past few days.
Source: The Financial Express
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