New Delhi: Dalmia Bharat on Wednesday said it has executed definitive agreements with debt-ridden Jaiprakash Associates Ltd (JAL) to acquire the latter’s cement assets as per an earlier announcement.
Dalmia Cement (Bharat) Ltd (DCBL), a subsidiary of Dalmia Bharat, on Tuesday executed definitive agreements with JAL for the acquisition of JP Super Cement Plant in Uttar Pradesh at an enterprise value of R 1,500 crore and costs and expenses of up to R 190 crore. However, this will be subject to various clearances and approvals related to JP Super plant and mines, said a regulatory update from Dalmia Bharat Ltd (DBL).
Moreover, it is also subject to “fulfilling certain conditions precedent including the final outcome of the pending arbitral- ton between JAL and Ultranet Cement Ltd.” 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 R 5,666 crore. As part of that, DCBL al- so executed a share purchase agreement on Tuesday for acquisition of 74% share holding of Bhili Jaypee Cement Ltd (BJCL) at an enterprise value of R 666 crore.
“DCBL is in process of signing a long-term lease agreement (having a term of seven years) with Jaiprakash Power Ventures Ltd for its Nigiri Cement Grinding Unit of 2 mil- lion MTPA (Nigiri Unit) located at Singrauli in Madhya Pradesh, which is subject to fulfilment of certain conditions precedent,” it said.