New Delhi: Jaiprakash Associates today decided to sell its entire 74 per cent stake in Bokaro Jaypee Cement to Dalmia Cement for a consideration of Rs 690 crore, in a move that will help the infra major trim debt.
Bokaro Jaypee Cement (BoJCL), a 74:26 joint venture between JAL and SAIL, has 2.1 million tonnes per annum (mtpa) capacity.
Swiss building material major Holcim-controlled ACC was also one of the contenders for buying the stake in the unit, but Dalmia bagged the deal as it offered a better valuation, a Jaiprakash Associates Ltd (JAL) offical said.
The JAL Board, which met earlier in the day to consider selling its 74 per cent stake each in two cement-making joint ventures with SAIL, however, did not take any decision on the Bhilai unit which has 2.2 mtpa capacity.
“The Board of Directors … has approved signing of share purchase agreement with Dalmia Cement (Bharat) Ltd for sale of 74 per cent stake in the paid-up equity share capital of BoJCL to Dalmia Cement (Bharat) Ltd …,” JAL said in a BSE filing.
The 74 per cent stake in BoJCL amounts to 9.89 crore shares. The shares would be sold at approximately Rs 69.74 per share (against their cost of Rs 18.57 per share).
“The above stake sale is subject to the approval of SAIL and such other approvals, as may be necessary from lenders of BoJCL and concerned authorities,” JAL said.
A JAL official said that the decision on selling stake in the second JV would taken later.
The Jaypee Group had last year sold its 4.8 mtpa capacity cement plant to Aditya Birla Group’s Ultratech. It also signed a deal recently with Abu Dhabi National Energy Company PJSC (TAQA), the Abu Dhabi government’s energy and utilities firm, for selling two hydro-power projects in Himachal Pradesh for Rs 10,500 crore.
The sale proceeds from the two cement joint ventures with SAIL is said to go towards trimming debt. Diversified Jaypee Group, which has interests in real estate, power and other sectors, is the country’s third largest cement firm.