Aditya Birla Group to acquire Gujarat cement for Rs 3,800 cr

Aditya Birla Group firm UltraTech Cement Ltd on Wednesday said it will acquire Gujarat Cement unit of Jaypee Cement Corp Ltd for Rs 3,800 crore.

UltraTech Cement will acquire the Gujarat Cement Unit of Jaypee Cement Corp Ltd. Gujarat Cement Unit comprises of an integrated cement unit at Sewagram and grinding unit at Wankbori, the company said in a statement.

The combined capacity of both the divisions is 4.8 million tonnes along with 57.5 MW coal-based thermal power plant, limestone reserves of over 90 years at current capacity and a captive jetty at Sewagram.

"With this acquisition of 4.8 million tonnes per annum, the company's current capacity increases to 59 million tonnes per annum. With projects underway it will stand raised to 70 million tonnes by 2015," UltraTech Cement Chairman Kumar Mangalam Birla said.

Putting an enterprise value of Rs 3,800 crore on Gujarat Cement Unit, UltraTech said it will issue equity to the shareholders of Jaypee Cement.

The proposed transaction is subject to approval of shareholders and creditors, sanction of the Scheme of Arrangement by the High Courts, approval of the Competition Commission of India besides other statutory approvals.