Shree Cement is acquiring Jaiprakash Associates' 1.50 million tonne (mt) cement grinding unit at Panipat in Haryana, for a total consideration of Rs 360 crore.
The acquisition is subject to satisfactory completion of due diligence and the cost of acquisition to adjustment for any short term liability and net working capital taken over as on the closing date, the company said in a statement sent across to the stock exchanges on Monday.
The acquisition is subject to satisfactory completion of due diligence and the cost of acquisition to adjustment for any short term liability and net working capital taken over as on the closing date, the company said in a statement sent across to the stock exchanges on Monday.
Shree Cement managing director HM Bangur said that the two groups have merely entered into an agreement to buy out the Panipat unit and not take over the company. The deal would get finalized only after the due diligence gets completed within the next two weeks.
If the deal is clinched, the acquisition will enhance Shree Cement's cement grinding capacity to 21.5 mt per annum and 23 mt by June 2015 from 20 mt now.
Incidentally, the Jaypee group has been on a debt-reduction spree and is selling most of its cement assets to reduce its debt of Rs 60,000 crore. In September, the company offloaded its Gujarat cement plant to UltraTech Cement for Rs 3,800 crore.
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