Dalmia Bharat Limited Update on acquisition of Cement assets from Jaiprakash Associates Limited

Dalmia Bharat Limited had earlier announced regarding signing of binding Framework Agreement and definitive agreements entered by Dalmia Cement (Bharat) Limited (DCBL), wholly owned subsidiary of the Company, with Jaiprakash Associates Limited (JAL) and its associates regarding acquisition of certain cement, clinker and power plants. In this connection, on April 25, 2023, DCBL has executed the definitive agreements with Jaiprakash Associates Limited in respect to the following:

a) The agreement for acquisition of JP Super with an Enterprise value of ₹1500 Crs. and costs and expenses upto Rs.190 Crs, subject to actuals, for various clearances and approvals related to the JP Super plant and mines and the agreement is subject to fulfilling certain conditions precedent including the final outcome of the pending arbitration between Jaiprakash Associates Limited and Ultratech Cement Limited;

b) The Share Purchase Agreement ("SPA") for acquisition of 74% shareholding of Bhilai Jaypee Cement Limited (BJCL) for an Enterprise Value of ₹666 Crs, and the SPA is subject to fulfilment of certain conditions precedent.

c) DCBL has also signed a Long-Term Lease Agreement (having a term of seven years) with Jaiprakash Power Ventures Limited ("JPVL") for its Nigrie Cement Grinding Unit of 2 Million MTPA ("Nigrie Unit") located at Singrauli in the State of Madhya Pradesh, which is subject to fulfillment of certain conditions precedent. DCBL has an option to purchase the Nigrie Unit anytime within the lease period at an Enterprise Value of Rs.250 Crs.

Shares of Dalmia Bharat Limited was last trading in BSE at Rs. 1920.30 as compared to the previous close of Rs. 1929.70. The total number of shares traded during the day was 8638 in over 1394 trades.

The stock hit an intraday high of Rs. 1934.05 and intraday low of 1908.30. The net turnover during the day was Rs. 16569548.00.

Source : Equity Bulls

Keywords

DalmiaBharat INE00R701025 DalmiaCementBharat Acquisition JaiprakashAssociates CementAssets