UltraTech Board approves Jaiprakash Associates MP acquisition

UltraTech Board approves Jaiprakash Associates MP acquisition
24 December 2014

The Board of Directors of UltraTech have approved in principle the acquisition of the Madhya Pradesh assets of Jaiprakash Associates Ltd, which represents an entreprise value of INR54bn (US$852m).

The acquisition includes an integrated cement plant with a clinker capacity of 2.1Mta and a cement capacity of 2.6Mta in Bela and an integrated unit at Sidhi with clinker and cement capacities of 3.1Mta and 2.3Mta, respectively. The deal also covers a 180MW thermal power plant complex of which 155MW is located at Sidhi and 25MW at Bela.

"This acquisition will create significant synergies and the surplus clinker will enable UltraTech to augment its cement capacity by a further 1.8- 2.5Mta  in addition to the 4.9Mta  mentioned above. This acquisition will enable the Company to increase its presence in the Satna cluster of Madhya Pradesh," said the company in a statement.

The transaction is subject to due diligence, definitive agreements and regulatory approvals. It will lift UltraTech's capacity in India from 60Mta to 65Mta and following the succesful completion of projects underway, the cement producer will see capacity rise to around 71Mta by 2016.

Published under Cement News