Dalmia Bharat’s subsidiary - Dalmia Cement (Bharat) (DCBL), has received board’s approval for proposed acquisition of 74% stake in Bokaro Jaypee Cement (BoJCL). The total enterprise value is Rs 1,150 crore. The proposed acquisition would be funded through a mix of debt and internal accruals. With this acquisition, DCBL’s current installed cement capacity including subsidiaries and associates will reach 20 MTPA.
BoJCL is a joint venture between Jaiprakash Associates (JAL) with 74% stake, and Steel Authority of India (SAIL) with 26% stake. BoJCL is a 2.1 million tonnes per annum (MTPA) cement unit located at Bokaro, Jharkhand. It has a 30-year long term clinker supply arrangement with JAL and 30-year slag supply arrangement with SAIL.
Dalmia Bharat is a cement manufacturer with plants in Tamil Nadu and Andhra Pradesh with a capacity of nine million tonnes per annum. The company is engaged in the business of cement, thermal power & other businesses.
