Reliance Infra in talks to sell cement biz for Rs. 26bn

Under the terms of the deal, the buyer would also take over the cement unit's outstanding debt of Rs. 24 billion, giving the business an enterprise value of Rs. 50 bn, reports a business daily.

Reliance Infrastructure Ltd. is in advanced talks to sell its cement business for INR 26 billion (US$394 million) and a deal could be announced as soon as this week, according to a foreign news agency.

Under the terms of the deal, the buyer would also take over the cement unit's outstanding debt of Rs. 24 billion, giving the business an enterprise value of Rs. 50 bn, reports a business daily.

A consortium, which includes some private equity (PE) firms, is likely to emerge as the successful bidder for the cement unit of Reliance Infrastructure, according to the newspaper.

Seven bidders had been shortlisted earlier.

Another media report on Wednesday indicated that Reliance Infrastructure was in talks with cement makers as well as PE firms, including Blackstone Group LP and Carlyle Group LP for the sale of its cement business.

Reliance Infrastructure's cement unit has three plants with total installed capacity of 5.8 million tonnes per annum (MTPA). Another 5 MTPA cement manufacturing plant is being built in Maharashtra.