Jaypee Cement selling its stakes to Ultratech worth 4000crore

By Accommodation Times News Service

After a little over a year’s negotiation, Jaypee Cement has struck a deal with Aditya Birla Group firm Ultratech to sell 51 per cent stake in the 5 mt pa Gujarat facility for close to Rs 4,000crore.

“The deal has been finalized. Ultratech will buy Jaypee Cement Corporation’s 51 per cent stake in Gujarat plant, which has an annual capacity of five million tones for close to Rs 4,000crore” a Jaypee Group official told. The Jaypee Group, having interests in areas such as real estate, cement and hospitality, is the country’s third largest cement maker with an installed capacity of 33.5 mtpa.

Though Jaiprakash Associates, the flagship company of the Group, holds the majority of the cement business, however, operations in Gujarat and Andhra Pradesh having a total capacity of 9.8 mtpa, are under the aegis of Jaypee Cement Corporation. This was hived off for monetizing the asset.

Aditya Birla Group, the country’s largest cement maker with 54 mtpa capacity, runs cement business through Ultratech Cement and plans to increase its capacity by another 10 mtpa by 2015. The two were engaged in negotiations for a little over a year now.

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