UltraTech keen to take over JP Super despite new deal
Cement

UltraTech keen to take over JP Super despite new deal

UltraTech Cement is "keen to take over" Jaiprakash Associates' Dalla Super cement asset in Uttar Pradesh, once the arbitration process is complete, according to Atul Daga, executive director and CFO at UltraTech. The Dalla asset has a 2.3 million tonne clinker capacity and a limestone mine capacity of 100 million tonnes, and was part of a larger cement deal that UltraTech agreed to buy from Jaiprakash Associates in 2016.

Jaiprakash Associates has already entered into an agreement with Dalmia Cement Bharat for the Dalla asset, for which Dalmia Cement has executed a definitive agreement to acquire JP Super for INR 1,500 crore and expenses of up to INR 190 crore. However, the agreement is "subject to clearances and approvals, including the final outcome of the pending arbitration between Jaiprakash Associates and UltraTech," says Dalmia Cement.

The arbitration between the two companies centres on the failed redemption of redeemable preference shares (RPS) of INR 1,000 crore issued by UltraTech in favour of Jaiprakash Associates in June 2017. The shares were placed in an escrow and subject to certain precedents related to the Dalla Super deal. UltraTech claims that the redemption failed due to inaction on the part of Jaiprakash Associates in signing the joint instruction notice, while Jaiprakash Associates argues that "UltraTech’s right to obtain the transfer and vesting of Jaypee Super Plant of Jaiprakash Associates along with the mines under Blocks 1, 2, 3 & 4 in Sonebhadra, Uttar Pradesh, stands ceased," due to UltraTech's failure to redeem the RPS issued in its favour and its failure to exercise the option to waive the fulfilment of relevant conditions within the permissible time.

Jaiprakash Associates announced a fresh deal for the assets with Dalmia Cement in December 2022, as part of a larger deal worth an enterprise value of INR 5,666 crore. The definitive agreements were signed in April, with Dalmia Bharat executing the deal in three tranches, with the third tranche comprising the Dalla asset.

According to analysts with Asian Markets Securities, the Dalla asset is important for its access to limestone reserves. "Uttar Pradesh doesn't have limestone except Super Dalla complex of UltraTech Cement (erstwhile with Jaiprakash Associates) and hence, no additional clinker capacity can be set up," they say. Analysts note that the deal is crucial for Dalmia Cement due to similar clinker-related reasons.

Also Read
Asian Paints' net profit increased by 44%
Noida authority team to visit Gujarat & Haryana


UltraTech Cement is keen to take over Jaiprakash Associates' Dalla Super cement asset in Uttar Pradesh, once the arbitration process is complete, according to Atul Daga, executive director and CFO at UltraTech. The Dalla asset has a 2.3 million tonne clinker capacity and a limestone mine capacity of 100 million tonnes, and was part of a larger cement deal that UltraTech agreed to buy from Jaiprakash Associates in 2016. Jaiprakash Associates has already entered into an agreement with Dalmia Cement Bharat for the Dalla asset, for which Dalmia Cement has executed a definitive agreement to acquire JP Super for INR 1,500 crore and expenses of up to INR 190 crore. However, the agreement is subject to clearances and approvals, including the final outcome of the pending arbitration between Jaiprakash Associates and UltraTech, says Dalmia Cement. The arbitration between the two companies centres on the failed redemption of redeemable preference shares (RPS) of INR 1,000 crore issued by UltraTech in favour of Jaiprakash Associates in June 2017. The shares were placed in an escrow and subject to certain precedents related to the Dalla Super deal. UltraTech claims that the redemption failed due to inaction on the part of Jaiprakash Associates in signing the joint instruction notice, while Jaiprakash Associates argues that UltraTech’s right to obtain the transfer and vesting of Jaypee Super Plant of Jaiprakash Associates along with the mines under Blocks 1, 2, 3 & 4 in Sonebhadra, Uttar Pradesh, stands ceased, due to UltraTech's failure to redeem the RPS issued in its favour and its failure to exercise the option to waive the fulfilment of relevant conditions within the permissible time. Jaiprakash Associates announced a fresh deal for the assets with Dalmia Cement in December 2022, as part of a larger deal worth an enterprise value of INR 5,666 crore. The definitive agreements were signed in April, with Dalmia Bharat executing the deal in three tranches, with the third tranche comprising the Dalla asset. According to analysts with Asian Markets Securities, the Dalla asset is important for its access to limestone reserves. Uttar Pradesh doesn't have limestone except Super Dalla complex of UltraTech Cement (erstwhile with Jaiprakash Associates) and hence, no additional clinker capacity can be set up, they say. Analysts note that the deal is crucial for Dalmia Cement due to similar clinker-related reasons. Also Read Asian Paints' net profit increased by 44% Noida authority team to visit Gujarat & Haryana

Next Story
Infrastructure Transport

Mumbai-Ahmedabad Bullet Train Set to Launch by 2028

India’s first bullet train is set to revolutionize high-speed travel along the western corridor, with the Mumbai-Ahmedabad high-speed rail project aiming for a 2028 launch. This announcement marks a major milestone in India’s infrastructure goals, as it promises to reduce travel time between the two economic hubs from eight hours to just three.Spanning a planned 508-kilometre stretch, the corridor stands as a flagship example of Indo-Japanese collaboration in technology and engineering. Once operational, the train is expected to transform intercity mobility and place India among the select..

Next Story
Infrastructure Transport

Mumbai-Gandhinagar Train Service Enhances Passenger Capacity

The Mumbai Central–Gandhinagar Capital Vande Bharat Express has increased its passenger capacity by adding four additional AC chair car coaches to meet the growing commuter demand on one of India’s busiest business corridors. This upgrade, effective from 11 May, raised the train’s seating capacity from 1,128 to 1,440 passengers, allowing it to serve 936 more passengers daily in both directions. The increase was described as a practical measure to accommodate the surging demand on the busy Mumbai–Ahmedabad–Gandhinagar route, which regularly operates at over 150 percent seat occupancy...

Next Story
Infrastructure Urban

Delhi Plans 12 Sewage Plants to Clean Najafgarh Drain Efficiently

Delhi’s ambitious plan to improve the water quality of the Yamuna River has gained significant momentum as the Delhi Jal Board (DJB) has begun work on 12 new sewage treatment plants (STPs) aimed at reducing the volume of untreated sewage being discharged from the Najafgarh Drain.This initiative forms part of the ongoing efforts to clean the Yamuna and restore the river’s health, which has long been a critical environmental issue for the national capital. Given the alarming pollution levels in the Yamuna, experts and officials consider this project a vital step toward addressing the persist..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?