UltraTech Cement Limited on 28 February 2016 entered into a binding Memorandum of Understanding (MoU) with Jaiprakash Associates Limited for the acquisition of its identified cement plants for an enterprise value of 16500 crore rupees.
The cement plants of Jaiprakash Associates to be acquired have a cement capacity of 22.4 mtpa situated in the states of Madhya Pradesh, Uttar Pradesh, Himachal Pradesh, Uttarakhand, Anadhra Pradesh and Karnataka.
Under the deal, UltraTech will pay an additional 470 crore rupees for completion of the grinding unit for 4 mtpa capacity under implementation.
The acquisition, which is subject to definitive agreements and regulatory approvals as may be required, will augment UltraTech’s cement capacity to 90.7 mtpa from the current 68.3 mtpa.
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When: 28 February 2016