Dalmia Cement acquires 74% stake in Bokaro Jaypee Cement
EPC News: 25 March,2014:New Delhi: Dalmia Cement (Bharat) Ltd (DCBL), a subsidiary of Dalmia Bharat Ltd has acquired 74% stake in Bokaro Jaypee Cement Ltd (BoJCL) as the Board of Director of DCBL approved the proposed acquisition. Dalmia Cement (Bharat) Ltd (DCBL), a subsidiary of Dalmia Bharat Ltd has acquired 74% stake in Bokaro Jaypee Cement Ltd (BoJCL) as the Board of Director of DCBL approved the proposed acquisition.
Dalmia Bharat Cement has signed definitive agreements for acquisition of stakes in BoJCL at a consideration of `1,150 crore subject to various regulatory or contractual clearances and permissions.
Commenting on the acquisition, Mahendra Singhi, Group CEO-Cement, DCBL states, “We are delighted to associate with one of India’s finest infrastructure players.â€
The proposed acquisition would be funded through a mix of debt and internal accruals. “The transaction was completed in a record time with excellent chemistry and co-operation between the professional teams of JAL and DCBL,†informs Singhi.
Bokaro Jaypee Cement has a 2.1 million tonnes per annum (MTPA) cement unit located at Bokaro, Jharkhand. The joint venture company between Jaiprakash Associates Ltd (JAL) and Steel Authority of India Ltd (SAIL) has a 30-year long term clinker supply arrangement with JAL and 30-year slag supply arrangement with SAIL. JAL and SAIL has 74% and 26% stake in the company respectively.
This acquisition takes DCBL’s current installed cement capacity (including subsidiaries and associates) to 20 MTPA.
EPC World News Bureau
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