Reliance Cement becomes subsidiary of Birla Corporation Limited
Reliance Cement Company Private Limited (RCCPL) was acquired by the Birla Corporation Limited for 4800 crore rupees. RCCPL is a subsidiary of the Reliance Infrastructure Ltd (RInfra).
Reliance Infrastructure Ltd (RInfra) on 22 August 2016 announced that it completed 100 percent sale of Reliance Cement Company Private Limited (RCCPL) to Birla Corporation Limited.
While RInfra is an entity of the Anil Ambani-headed Reliance Anil Dhirubhai Ambani Group (Reliance ADAG), Birla Corp is the flagship Company of the M P Birla Group.
Details related to the transaction
• The transaction was in tune with the Share Purchase Agreement (SPA) that was signed between the two entities in February 2016.
• It was valued at 4800 crore rupees or 140 US dollars per tonne and the proceeds will utilised by RInfra towards debt reduction.
• Under the SPA, the Birla Corp acquired an integrated cement capacity of 5.08 Metric tonnes per annum (Mtpa) at Maihar, Madhya Pradesh and Kundanganj, Uttar Pradesh.
• Besides, it also involves acquisition of grinding unit of 0.5 Mtpa capacity located at Butibori, Maharashtra.
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