UltraTech Cement to acquire Gujarat cement for Rs 3,800 cr

UltraTech Cement to acquire Gujarat cement for Rs 3,800 cr
Ultra Tech Cement Ltd has said that it will acquire Jaypee Cement Corp Ltd., a unit of Gujarat Cement, for Rs 3,800 crore. In a statement, the Company said that UltraTech Cement will acquire the Gujarat Cement Unit of Jaypee Cement Corp Ltd. Gujarat Cement Unit comprises of an integrated cement unit at Sewagram and grinding unit at Wankbor.

The combined capacity of both the divisions is 4.8 million tonnes along with 57.5 MW coal-based thermal power plant, limestone reserves of over 90 years at current capacity and a captive jetty at Sewagram, reported PTI.

"With this acquisition of 4.8 million tonnes per annum, the company's current capacity increases to 59 million tonnes per annum. With projects underway it will stand raised to 70 million tonnes by 2015," UltraTech Cement Chairman Kumar Mangalam Birla said. UltraTech Cement has said that it will issue equity to the shareholders of Jaypee Cement.

The proposed transaction is subject to approval of shareholders and creditors, sanction of the Scheme of Arrangement by the High Courts, approval of the Competition Commission of India besides other statutory approvals.

Dion Global Solutions Ltd.

Story first published: Thursday, September 12, 2013, 9:10 [IST]
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