However, the size of the deal announced last month has been reduced from Rs 16,500 crore as Jaiprakash Associates Ltd (JAL) decided not to sell its cement plant in Karnataka with a capacity of 1.2 million tonnes per annum (MTPA).
In a filing to the BSE, JAL said: "Board today approved the definitive agreement with Ultratech Cement Ltd (UTCL) for sale of part of its cement business comprising identified operating cement plants with an aggregate capacity of 17.2 MTPA spread over the states of UP, MP, HP, Uttarakhand and Andhra Pradesh, besides a grinding unit of 4 MTPA capacity, which is currently under implementation in UP."
The deal will help JP Associates reduce its debt, which
runs into thousands of crores of rupees.
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The transaction is subject to various regulatory approvals including stock exchanges, Competition Commission of India, shareholders and creditors as well as sanction of scheme of arrangement by High Courts of Mumbai and Allahabad.
"The consummation of transaction is expected to take 9-12 months," JAL said in the filing.
Post the deal, JAL will retain 10.6 MTPA cement capacity spread over the states of Madhya Pradesh (MP), Uttar Pradesh (UP), Andhra Pradesh (AP) and Karnataka.
The deal will help JAL reduce its debt.
On the deal, a ICICI Bank spokesperson said: "Jaypee Group in consultation with ICICI Bank has been selling various assets in its cement and power businesses to take care of its debt obligations."
These sales have helped bring down debt to some extent. ICICI Bank has actively worked with the management of Jaypee to sell its entire cement business and this business is now being sold to the Aditya Birla group, it added.
In a separate filing, Ultratech Cements Ltd (UCTL) said: "Upon consummation, Ultratech's cement capacity will stand augmented to 91.1 MTPA including its overseas operations."
It however said the acquisition is expected to take around 12-14 months to consummate and is subject to receipt of applicable statutory/regulatory approvals.
Ultratech was assisted by Standard Chartered bank as transaction advisor, Cyril Amarchand Mangaldas as legal advisor and EY did the financial due diligence, it added.