UltraTech and Dalmia Bharat highest bidders in Binani Cement deal
UltraTech Cement and Dalmia Bharat-Bain Piramal Resurgence Fund consortium are leading the bids for Binani Cement, according to Indiainfoline. Both partieshave submitted bids of approximately INR60,000m (US$927.9m). For the final decision to be made by the creditors, both the bidders are asked to furnish additional details pertaining to their bids.
In addition, UltraTech is required to provide information on a Competition Commission of India (CCI) penalty. In 2016, CCI imposed a penalty of INR1170 on account of indulging in cartelisation - this is a contingent liability as of now for the company. Earlier this month, UltraTech's management indicated that even after the Binani acquisition, the company would have only 14Mta capacity in Rajasthan, while Shree Cement will reach 19Mta with its ongoing capacity addition of 2Mta, hence it would not face any hurdles from CCI.
The winner of the bid would get a strong foothold in the western and the northern Indian markets along with a 378Mt limestone mine accessibility.
Binani Cement owes approximately INR38840 to lenders, including loans acquired by Edelweiss Asset Reconstruction Co from banks and dues to the State Bank of India, Canara Bank and Bank of Baroda, says Indiainfoline.
