UltraTech boosts Binani Cement offer to US$1.06bil

MUMBAI: UltraTech Cement Ltd has increased its bid for Binani Cement Ltd in an email to the resolution professional overseeing the company’s bankruptcy proceedings as it tries to beat a consortium backed by Bain Capital.

The company has raised its offer to about 69 billion rupees (US$1.06bil) from about 62 billion rupees earlier, chief financial officer Atul Daga said in an interview. UltraTech, controlled by billionaire Kumar Mangalam Birla, is competing with the consortium led by Dalmia Bharat Ltd, which has been chosen as the highest bidder. Vijaykumar Iyer of Deloitte Touche Tohmatsu India LLP is the resolution professional overseeing the bidding.

“We are not happy with the way the process has been dealt with,” Daga said. “It’s not transparent and equitable. Specially when there was only a marginal difference in both the bids, the lenders should have called both the bidders to maximise the value.”

UltraTech, India’s biggest cement maker, has approached the National Company Law Tribunal and the matter will be heard on March 19, he said. Deloitte declined to comment.

Dalmia Bharat had put in a bid of about 63.5 billion rupees, people familiar with the matter said last month. The consortium’s proposal included offering about a 20% stake in Binani Cement to its lenders, the people said.

Dalmia Bharat made a joint offer with India Resurgence Fund, which is backed by Bain Capital Credit and local conglomerate Piramal Enterprises Ltd, the people said.

UltraTech’s earlier offer would rise to about 72 billion rupees once working capital is included, Daga said. “Our resolution plan is balanced,” he said.