Shree Cement to Acquire Jaypee Cement Unit for Rs 360 Crore

New Delhi: Jaiprakash Associates on Monday said it will sell its cement grinding unit at Panipat to Shree Cement Ltd for Rs 360 crore.

At its meeting on Monday, Jaiprakash Associates' board approved the proposed sale of its 1.5 million tonnes per annum capacity cement grinding unit at Panipat on an ongoing concern basis to Shree Cement or any of its associates for a total enterprise value of Rs 360 crore, JP Associates said in a statement.

The proposed sale is subject to approval of the lenders of Jaypee Associates and other concerned authorities.

Commenting on the deal, Jaiprakash Associates executive chairman Manoj Gaur said the transaction was a sequel to the decision of the Jaypee Group to bring down its debt and consolidate its operation.

After this transaction, Jaypee Cement would continue to be India's third manufacturer with an aggregate capacity of over 29 million tonnes per annum.

Last year, India's largest cement maker UltraTech Cement had acquired the Gujarat cement unit of Jaypee Cement Corporation for Rs 3,800 crore to help pare debt of the company.

Shares in JP Associates, on Monday, ended at Rs 51.80 apiece on the BSE, down 0.10 per cent from the previous close. Shree Cement stock ended 1.25 per cent lower at Rs 7,939.