In its biggest acquisition in two years, Aditya Birla Group has acquired Jaypee Group's cement unit in Gujarat, including debt, for Rs 3,800 crore.
According to the non-cash deal, UltraTech will take over the Rs 3,650-crore loan of Jaypee's Gujarat unit and transfer to it Rs 150 crore worth of shares once the transaction is completed. The valuation of the unit fell from Rs 4,300 crore earlier following an economic downturn and concerns over a mine owned by Jaypee, Business Standard reported.
Jaypee Group Executive Chairman Manoj Gaur said in New Delhi that the deal would bring down the group's overall debt by about Rs 3,600 crore, from Rs 56,000 crore as of August. BS quoted him as saying, "This is part of our plan to reduce the debt by Rs 15,000 crore this financial year. Even after the divestment, our cement capacity would be 32.8 million tonnes and our status among top three cement manufacturers in the country would stay intact".
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