Jaypee Group is acquiring a controlling stake in GP Goenka group’s Andhra Cements.
The deal involves Jaypee Development Corporation, a privately held arm of the group, acquiring 66.7 per cent in Andhra Cements for INR234.7 crore. This will be done through share purchase from the GP Goenka group and a preferential allotment of fresh shares, followed by an open offer.
While INR177 crore will be used for fresh equity infusion, the remaining will be used to buy a part of the stake currently held by the GP Goenka group. GP Goenka will remain a minority shareholder in Andhra Cements after the transaction.