Jaiprakash Associates (JAL) on Monday said that its board has approved signing an agreement with Dalmia Cement (Bharat) to sell its 74 per cent stake in Bokaro Jaypee Cement for Rs 690 crore.
Bokaro Jaypee Cement (BoJCL), a 74:26 joint venture between JAL and steel maker SAIL, owns a 2.1-mtpa cement plant at Bokaro, Jharkhand.
‘The Board of Directors ... has approved signing of share purchase agreement with Dalmia Cement (Bharat) Ltd for sale of 74 per cent stake in the paid-up equity share capital of BoJCL to Dalmia Cement (Bharat) Ltd ...,’ Jaiprakash Associates Ltd said in a Bombay Stock Exchange (BSE) filing.
The 74 per cent stake amounts to 9.89 crore shares. Holcim-controlled ACC was also one of the contenders for buying JAL’s stake in the venture. ‘The consideration for the transaction works out to approximately Rs 69.74 per share (against its cost of Rs 18.57 per share),’ it said.
‘The above stake sale is subject to the approval of SAIL and such other approvals, as may be necessary from lenders of BoJCL and concerned authorities,’ JAL said.
Earlier in the day, the company in a separate filing had said that a meeting of its board would be held to consider stake sale in joint venture subsidiaries. The company has another cement joint venture with SAIL in Bhilai which has 2.2 mtpa capacity.
A Jaiprakash Associates Ltd official said that the decision on selling stake in the second JV would taken later. The Jaypee Group had last year sold its 4.8 mtpa capacity cement plant to Aditya Birla Group’s Ultratech. It is also in talks to sell its two hydro-power projects in Himachal Pradesh mainly to reduce debt.
Bokaro Jaypee Cement (BoJCL), a 74:26 joint venture between JAL and steel maker SAIL, owns a 2.1-mtpa cement plant at Bokaro, Jharkhand.
‘The Board of Directors ... has approved signing of share purchase agreement with Dalmia Cement (Bharat) Ltd for sale of 74 per cent stake in the paid-up equity share capital of BoJCL to Dalmia Cement (Bharat) Ltd ...,’ Jaiprakash Associates Ltd said in a Bombay Stock Exchange (BSE) filing.
The 74 per cent stake amounts to 9.89 crore shares. Holcim-controlled ACC was also one of the contenders for buying JAL’s stake in the venture. ‘The consideration for the transaction works out to approximately Rs 69.74 per share (against its cost of Rs 18.57 per share),’ it said.
‘The above stake sale is subject to the approval of SAIL and such other approvals, as may be necessary from lenders of BoJCL and concerned authorities,’ JAL said.
Earlier in the day, the company in a separate filing had said that a meeting of its board would be held to consider stake sale in joint venture subsidiaries. The company has another cement joint venture with SAIL in Bhilai which has 2.2 mtpa capacity.
A Jaiprakash Associates Ltd official said that the decision on selling stake in the second JV would taken later. The Jaypee Group had last year sold its 4.8 mtpa capacity cement plant to Aditya Birla Group’s Ultratech. It is also in talks to sell its two hydro-power projects in Himachal Pradesh mainly to reduce debt.