Mumbai, 23rd December,2014
UltraTech Cement Limited – acquisition of Cement Units of Jaiprakash Associates
The Board of Directors of UltraTech Cement Limited, an Aditya Birla Group company
at its meeting held today has approved of acquiring the following cement business
of Jaiprakash Associates Limited (JAL) in Madhya Pradesh (MP):
This acquisition will create significant synergies and the surplus clinker will
enable UltraTech to augment its cement capacity by a further 1.8 - 2.5 MTPA in addition
to the 4.9 MTPA mentioned above. This acquisition will enable the Company to increase
its presence in Satna cluster of MP.
The Board has approved the Memorandum of Understanding setting out the broad terms
and conditions of the proposed acquisition. The Enterprise Value of this acquisition
has been agreed at Rs.5,400 crores.
The transaction is subject to customary due diligence, definitive agreements, and
regulatory approvals as may be required. With this acquisition, the Company’s cement
capacity in India will increase from ~60 mtpa to ~65 mtpa and with projects underway,
the capacity will stand raised to ~71mtpa by 2016.