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Jaiprakash Associates to divest Jaypee Super Cement plant in Uttar Pradesh

27 Apr 2023 Evaluate

Jaiprakash Associates has executed necessary agreements with Dalmia Cement (Bharat) (DCBL), wholly owned subsidiary of Dalmia Bharat for divestment of Jaypee Super Cement Plant located in Uttar Pradesh at an Enterprise Value of Rs 1500 crore. In addition to the Enterprise Value, DCBL has also agreed to incur actual costs and expenses upto Rs 190 crore, for various clearances and approvals relating to the Jaypee Super Cement plant and mines. This agreement is subject to certain conditions precedent, including the final outcome of the ongoing arbitration proceedings between Jaiprakash Associates and UltraTech Cement relating to the said Plant and Mines.

The company has also entered into Share Purchase Agreement for acquisition of 74% shareholding of Bhilai Jaypee Cement (BJCL) by DCBL for an Enterprise Value of Rs 666 crore. This agreement is subject to certain conditions precedent, including Jaypee Group’s settlement with Assets Care & Reconstruction Enterprise (ACRE) and Steel Authority of India’s (SAIL) approval for taking Dalmia Group as the JV partner in place of Jaypee Group.

Jaiprakash Associates (JAL) is the engineering and construction arm of the Jaypee group focused on development of river valley and hydro electric projects and a leader in construction of river valley and hydropower projects on turnkey basis for more than four decades.

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