Jaiprakash Associates (JPA), the Jaypee Group flagship, plans to dilute upto 26 per cent stake in its cement business, the third largest in the country. The company has hired a few investment bank-ers to advise on any strategic stake sale
Irish cement maker CRH terminated discussions with Jaypee Cement Corporation for acquiring stake due to lack of agreement on certain terms. The company was planning to buy Jaypee's Gujarat cement unit due to its dominant market share there. CRH had planned to buy 51 per cent in Jaypee's Gujarat cement unit at an en-terprise value of Rs 4,200 crore. The deal was aimed at trimming Jaypee's consolidated debt of about Rs 45,000 crore.
Jaiprakash Associates recently approved the de-merger of its Andhra Pradesh and Gujarat units to merge them into wholly-owned subsidiary Jaypee Cement Corp, which is currently building a plant in Karnataka with a 3 mn tonne capacity.
The Group made the headlines with the Buddh International Circuit – part of the Jaypee Green Sports City – that hosted the Formula One Indian Grand Prix in 2011. Jaiprakash Associates has established its stronghold in the engineering and construction of hydropower projects in the country, with an enviable track record of strong project implementation in different capacities.
Cement companies-Jaypee Cement and Ultra Tech Cement on September 19 received a notice from the Gujarat High Court over the deal the two companies entered for a cement factory in Kutch. A public interest litigation (PIL) filed by local villagers, alleges that Jaypee Cement has encroached upon the village land and is dumping waste in their village area.
This is one company that does not sound retreat come hell or high water. The flagship company of the Jaypee Group, Jaiprakash Associates is a leader in the construction of river valley and hydropower projects on a turnkey basis for more than four decades.
France´s Vicat is in talks with its JV partner to buy 47 per cent stake in Sagar Cements. The deal is expected to value the company around Rs 4,100 crore. If the deal with Sagar Cements fructifies, it will be the largest since UltraTech´s Rs 3,800 crore purchase of the Gujarat unit of Jaypee Cement in September 2013 and mark an intensification of the consolidation in India´s cement business.