Nuvoco Vistas Corp, the cement business of India’s Nirma Group, has announced the acquisition of Gujarat-based Vadraj Energy in a transaction valued at INR20bn (US$24m). The deal involves purchasing 100 per cent of the securities of Algebra Endeavour Pvt Ltd, the holding company of Vadraj Energy.
Vadraj Energy operates power plants at Kutch and Surat, which Nuvoco said will be used for captive power consumption across its cement operations. A Securities Purchase Agreement (SPA) has been executed with sellers JSW Cement Ltd and Alpha Alternatives Holdings, with completion expected within 10 days of fulfilling all conditions precedent.
Algebra Endeavour is engaged in advisory and investment activities, while its wholly owned subsidiary, Vadraj Energy (Gujarat), owns the power assets being transferred.
JSW Cement confirmed its participation in the SPA for the full transfer of its shareholding in Algebra Endeavour to Nuvoco Vistas.
Nuvoco is India’s fifth-largest cement producer, with a cement capacity of 35Mta and a strong market presence in eastern India. The acquisition follows the recent approval by the National Company Law Tribunal for Nuvoco’s INR1.8bn crore bid for Vadraj Cement.
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