India: UltraTech completes deal to buy Jaypee Cement

Jaypee Cement Corporation unit in Gujarat, India, will come into UltraTech Cement's possession following approval for the acquisition from the Bombay and Ahmedabad High Courts. The deal includes the 4.8Mta cement plant with a 57.5MW coal-based thermal power plant, limestone reserves for over 90 years and a captive jetty at Sewagram for an enterprise value of INR38000m (US$637.8m).

The company has already received the approval of capital market regulator SEBI, shareholders and creditors. As part of the deal, UltraTech will absorb a debt of INR36500m of Jaypee Cement Corporation and issue UltraTech shares worth INR1500m to Jaypee Associate.

The effective date of demerger scheme is 12 June, said UltraTech in a release. The demerger implementation committee of UltraTech has also allotted 114,382 equity shares and credited to the preferred shareholders of Jaypee Cement Corporation, said UltraTech Cement. The shares of UltraTech were down 0.31 per cent at INR2759 on Thursday.