Wednesday, September 11, 2013


Ultratech buys Jaypee Cement unit-:







MUMBAI: Aditya Birla Group flagship company Ultratech Cement on Wednesday announced acquisition of Jaypee Group's Gujarat cement unit for an enterprise value of Rs 3,800 crore.

"We will infuse equity to the tune of Rs 150 crore and Jaypee Cement (JCCL) debts of Rs 3,650 crore will be transferred to the books of Ultratech. With this acquisition, our cement capacity increases to 59 mtpa and with projects underway, it will stand raised to 70 mtpa by 2015. The transaction will be accretive in the next three years," Aditya Birla Group chairman Kumar Mangalam Birla said on Wednesday while announcing the deal. "Ultratech will save Rs 350 crore by way tax benefits and other synergies," Birla said.

The sale will help Jaiprakash Associates reduce its debt by 15%, chairman Manoj Gaur said in New Delhi on Wednesday. JCCL is a wholly owned subsidiary of Jaiprakash Associates

Arusi
PGDM 3rd sem

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