 "Reliance Infra in advanced talks to sell cement unit for $394 million")
Reliance Infrastructure is in advanced talks to sell its cement business for Rs 26 billion ($394 million) and a deal could be announced as soon as this week, said a source with direct knowledge of the matter.
Under the terms of the deal, the buyer would also take over the cement unit's outstanding debt of Rs 24 billion, giving the business an enterprise value of Rs 50 billion rupees, the source told Reuters, declining to be identified ahead of a public announcement.
A spokesman for the Reliance Group, a diversified conglomerate whose business interests range from telecom to finance and infrastructure building, declined to comment.
Reliance Infrastructure's cement unit has three plants with total installed capacity of 5.8 million tonnes per annum (MTPA). Another 5 MTPA cement manufacturing plant is being developed in western Maharashtra, according to its website.
A consortium, which includes some private equity (PE) firms, is likely to emerge as the successful bidder for the unit, said the source, adding seven bidders had been shortlisted earlier and that the sale proceeds would be used to pare the group's debt.
Bloomberg earlier on Wednesday reported, citing people familiar with the matter that Reliance Infrastructure was in talks with cement makers as well as private equity firms including Blackstone Group and Carlyle Group for the sale.
Blackstone and Carlyle declined to comment when contacted by Reuters.