Comments
UltraTech Cement, an Aditya Birla Group company, has decided to sell its entire stake in China unit for $120 million (₹900 crore).
UltraTech had inherited the China plant as part of acquisition of Binani Cement for ₹7,950 crore in 2018.
Singapore-headquartered Krishna Holdings Pte and Nathdwara Cement, both wholly-owned subsidiary of UltraTech Cement, have entered into a binding agreement for divesting entire equity shareholding of 92.5 per cent in Shandong Binani Rongan Cement, said UltraTech Cement in a statement on Tuesday.
In terms of the agreement, it added Krishna will divest its entire shareholding at an
enterprise value of RMB 845 million, equivalent to $120 million subject to customary closing conditions and regulatory approvals in compliance with the local laws.
Binani Cement was dragged to insolvency proceedings in July 2017 after it defaulted on ₹3,900 crore loan to a group of lenders that include Edelweiss Asset Reconstruction Company, State Bank of India, Canara Bank and Bank of Baroda.
In February 2018, UltraTech and a consortium of Dalmia Bharat and Bain-Piramal’s India Resurgence Fund had bid for the company.
The Dalmia consortium initially emerged as the preferred bidder with an offer of ₹6,300 crore. However, UltraTech sweetened its initial bid twice to close the deal at ₹7,950 crore.
In this process, UltraTech had acquired 6.25-million tonne plant of Binani Cement in Rajasthan that comprises an integrated cement unit with capacity of 4.85 million tonne and a 1.4-million tonne split grinding unit which has integrated with itself fully. Binani Cement also had operations in Dubai and China.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.