Orient Cement has reached an agreement to buy two cement units from Jaypee in the central and eastern regions of India.
Orient will buy a 74 per stake in Bhilai which is a joint venture between Jaiprakash Associates Ltd (JAL) and Steel Authority of India Ltd (SAIL). Bhilai has an integrated PSC cement capacity of 2.2Mta consisting of a clinker unit in Satna area in Madhya Pradesh and a grinding unit in Bhilai, Chhattisgarh.
Another agreement was signed for the acquisition of the 2Mta Nigri cement grinding unit, a Jaiprakash Power Ventures concern. This grinding unit is located very close to the end markets in Bihar, Jharkhand and eastern Uttar Pradesh.
“The agreement was signed on a cash-free and debt-free basis and subject to adjustments on account of working capital, if any and subject to approval of SAIL, approval of lenders of BJCL besides other statutory and regulatory approvals, as applicable,” said JP Associates in filing to the exchanges.
