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Dalmia Bharat executes definitive agreements to acquire cement assets
Cement

Dalmia Bharat executes definitive agreements to acquire cement assets

According to an earlier announcement, Dalmia Bharat has executed definitive agreements with debt-ridden Jaiprakash Associates (JAL) to acquire the latter's cement assets. Dalmia Cement (Bharat) Limited (DCBL), a subsidiary of Dalmia Bharat, signed definitive agreements with JAL to acquire the JP Super Cement Plant in Uttar Pradesh for Rs 1,500 crore plus costs and expenses of up to Rs 190 crore. 

According to a regulatory update from Dalmia Bharat Ltd (DBL), this will be subject to various clearances and approvals related to the JP Super plant and mines. Furthermore, it is conditional on "fulfilling certain precedent conditions, including the final outcome of the pending arbitration between JAL and Ultratech Cement." On December 12, 2022, DBL had announced that it will acquire cement assets of Jaypee Group's flagship company JAL and its associate firm at an enterprise value of Rs 5,666 crore. 

In addition, DCBL executed a share purchase agreement for the acquisition of 74% of Bhilai Jaypee Cement (BJCL) at an enterprise value of Rs 666 crore. "DCBL has also signed a long-term lease agreement (with a term of seven years) with Jaiprakash Power Ventures Ltd for its Nigrie Cement Grinding Unit of 2 million MTPA (Nigrie Unit)," it said. 

DCBL has the option to purchase the Nigrie Unit at any time during the lease period for Rs 250 crore, according to DBL.DCBL announced in December that it had signed a "binding framework agreement for the acquisition of clinker, cement, and power plants from JAL and its associate company." The transaction includes a total cement capacity of 9.4 million tonnes per annum (MTPA), a clinker capacity of 6.7 MTPA, and two 280MW thermal power plants for a total enterprise value of Rs 5,666 crore. These assets are located in the Indian states of Madhya Pradesh, Uttar Pradesh, and Chhattisgarh. In a similar filing, JAL confirmed the developments and stated that it has "executed necessary agreements with DCBL" for the sale of the Jaypee Super Cement Plant in Uttar Pradesh for Rs 1,500 crore. 

It has also entered into a share purchase agreement with DCBL for the acquisition of 74% of BJCL for a total enterprise value of Rs 666 crore. "This agreement is subject to certain conditions precedent, including Jaypee Group's settlement with Assets Care & Reconstruction Enterprise Limited (ACRE) and SAIL's approval for taking Dalmia Group as the JV partner in place of Jaypee Group," the company stated. 

According to JAL, this follows the signing of a binding framework agreement and definitive agreements by JAL and its associate company with DCBL regarding the divestment of certain cement, clinker, and power plants for an enterprise value of Rs 5,666 crore, as part of the company's ongoing efforts to reduce its debt. The acquisition will help Dalmia expand its footprint into the central region.

According to an earlier announcement, Dalmia Bharat has executed definitive agreements with debt-ridden Jaiprakash Associates (JAL) to acquire the latter's cement assets. Dalmia Cement (Bharat) Limited (DCBL), a subsidiary of Dalmia Bharat, signed definitive agreements with JAL to acquire the JP Super Cement Plant in Uttar Pradesh for Rs 1,500 crore plus costs and expenses of up to Rs 190 crore. According to a regulatory update from Dalmia Bharat Ltd (DBL), this will be subject to various clearances and approvals related to the JP Super plant and mines. Furthermore, it is conditional on fulfilling certain precedent conditions, including the final outcome of the pending arbitration between JAL and Ultratech Cement. On December 12, 2022, DBL had announced that it will acquire cement assets of Jaypee Group's flagship company JAL and its associate firm at an enterprise value of Rs 5,666 crore. In addition, DCBL executed a share purchase agreement for the acquisition of 74% of Bhilai Jaypee Cement (BJCL) at an enterprise value of Rs 666 crore. DCBL has also signed a long-term lease agreement (with a term of seven years) with Jaiprakash Power Ventures Ltd for its Nigrie Cement Grinding Unit of 2 million MTPA (Nigrie Unit), it said. DCBL has the option to purchase the Nigrie Unit at any time during the lease period for Rs 250 crore, according to DBL.DCBL announced in December that it had signed a binding framework agreement for the acquisition of clinker, cement, and power plants from JAL and its associate company. The transaction includes a total cement capacity of 9.4 million tonnes per annum (MTPA), a clinker capacity of 6.7 MTPA, and two 280MW thermal power plants for a total enterprise value of Rs 5,666 crore. These assets are located in the Indian states of Madhya Pradesh, Uttar Pradesh, and Chhattisgarh. In a similar filing, JAL confirmed the developments and stated that it has executed necessary agreements with DCBL for the sale of the Jaypee Super Cement Plant in Uttar Pradesh for Rs 1,500 crore. It has also entered into a share purchase agreement with DCBL for the acquisition of 74% of BJCL for a total enterprise value of Rs 666 crore. This agreement is subject to certain conditions precedent, including Jaypee Group's settlement with Assets Care & Reconstruction Enterprise Limited (ACRE) and SAIL's approval for taking Dalmia Group as the JV partner in place of Jaypee Group, the company stated. According to JAL, this follows the signing of a binding framework agreement and definitive agreements by JAL and its associate company with DCBL regarding the divestment of certain cement, clinker, and power plants for an enterprise value of Rs 5,666 crore, as part of the company's ongoing efforts to reduce its debt. The acquisition will help Dalmia expand its footprint into the central region.

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