Orient Cement terminates share purchase agreement and business transfer agreement

For acquisition of Bhilai Jaypee Cement and Nigrie Cement Grinding Unit

Orient Cement announced the termination of share purchase agreement (SPA) entered with Jaiprakash Associates (JAL) for acquisition by the Company of74% equity shares of Bhilai Jaypee Cement from JAL. The company also announced the termination of business transfer agreement(BTA) entered into between Company, Jaiprakash Power Ventures (JPVL) and JAL, for acquisition by Company of Nigrie Cement Grinding Unit, as going concern from JPVL.

While each of the SPA and the BTA were executed on 31 May 2017. Under provisions of the SPA and the BTA, either party is entitled to terminate the agreement if the closing does not take place within expiry of 12 months from date of execution of the SPA and the BTA. Since the closing has not been achieved within said period of 12 months the Company has terminated the SPA and the BTA with notice to other parties. Therefore, the SPA and the BTA stand terminated.

 

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