Jaypee hikes value of assets sale to Ultratech at R16,189 crore

New Delhi, July 4: Faced with lenders invoking the strategic debt restructuring (SDR) option, debt-ridden Jaypee Group on Monday hiked the sale value of 21.2 million tonne per annum (MTPA) cement assets to Aditya Birla Group firm Ultratech to R16,189 crore.

The decision was taken on Monday at the board of directors meeting, convened at a short notice, of the Japyee Group flagship firm Jaiprakash Associates to discuss the progress of divestment plans and other issues.

Ultratech Cement has also agreed to pay an additional amount of R470 crore for completion of 4 million tonne per annum (MTPA) grinding unit in Uttar Pradesh.

Earlier in March this year, in one of the biggest deals in the domestic cement industry, embattled Jaypee Group had announced part sale of its cement business in five states and a grinding unit in Uttar Pradesh to Kumarmangalam Birla-led Ultratech for R15,900 crore.

“The board of directors of Jaiprakash Associates (JAL) has today approved an amendment to the definitive agreement dated March 31, 2016 and also the draft scheme of arrangement with Ultratech Cement for sale of cement business of JAL and its wholly owned subsidiary, Jaypee Cement Corporation (JCCL) comprising identified operating cement plants with an aggregate capacity of 17.20 MTPA...besides a grinding unit of 4 MTPA,” JAL said in a statement.

It said, “The total enterprise value now agreed is R16,189 crore. An additional amount of R470 crore shall be paid by UTCL for completion of the griding unit under implementation.”

The cement plants are spread over Uttar Pradesh, Madhya Pradesh, Himachal Pradesh, Uttarakhand and Andhra Pradesh.

Jaypee Group executive chairman Manoj Gaur said,” Jaypee Group is deter mined to reduce its overall debt through its proactive divestment initiatives to help the Group tide over these current turbulent times caused by economic slowdown in the country.” PTI