Jaiprakash Associates to sell Bokaro cement unit to Dalmia Cement

Jaiprakash Associates on Monday announced that it will sell 74 per cent stake in Bokaro Jaypee Cement, its joint venture with state-run SAIL, to Dalmia Cement (Bharat) for Rs 690 crore. The stake sale will take place at Rs 69.74 per share against acquisition cost of Rs. 18.57 per share, the company added.

The deal is subject to the approval of Steel Authority of India, its joint venture partner in Bokaro, Jaiprakash said after a board meeting.

Earlier this month, the company said it will sell two of its hydroelectric power plants, owned by its susbidiary Jaiprakash Power Ventures, to a consortium led by Abu Dhabi National Energy Co (TAQA). Jaypee Group, the country's third largest cement maker, had last year sold its 4.8 mtpa capacity cement plant to Aditya Birla Group's Ultratech.

The infra major has been on an asset-selling spree to de-leverage its balance sheet. Including subsidiaries, Jaiprakash Associates had total debts of Rs 55,000 crore to Rs 56,000 crore in September. The company has planned to cut its debt by Rs. 15,000 crore through sales of assets including cement and power plants during the current fiscal year through March.

Shares in Jaiprakash Associates ended 1.34 per cent higher at Rs 49. (With Agency inputs)