Jaiprakash Associates to seek shareholders' approval for divestments to UltraTech

Jaiprakash Associates Ltd will next month seek approval from its shareholders and creditors for the proposed sale of its cement units to UltraTech Cement.

"Pursuant to an order dated March 25, 2015...the High Court of Judicature at Allahabad has directed meetings of the equity shareholders and creditors of Jaiprakash Associates to be convened on May 16...for considering the scheme of arrangement between Jaiprakash Associates and Ultratech Cement Ltd," Jaiprakash Associates said in a regulatory filing.

Ultratech had said in December last year that its board has approved the acquisition of two plants in the central Indian state of Madhya Pradesh. The deal involves an integrated cement plant with a clinker capacity of 2.1Mta and a cement capacity of 2.6Mta in Bela and an integrated unit at Sidhi with clinker and cement capacities of 3.1Mta and 2.3Mta, respectively. The acquisition also covers a 180MW thermal power plant complex, of which 155MW is located at Sidhi and 25MW at Bela.