Infrastructure major Jaiprakash Associates Ltd will next month seek approval from its shareholders and creditors for the proposed sale of its cement units to Ultratech Cement.
"Pursuant to an order dated March 25, 2015...The High Court of Judicature at Allahabad has directed meetings of the equity shareholders and creditors of Jaiprakash Associates to be convened on May 16...For considering the scheme of arrangement between Jaiprakash Associates and Ultratech Cement Ltd," Jaiprakash Associates said in a regulatory filing.
Ultratech Cement Ltd had in January informed BSE that its board has approved signing of the agreement with JAL for the acquisition of the cement units of the infrastructure conglomerate.
"The acquisition will be by way of a Scheme of Arrangement between JAL and the company and their respective shareholders and creditors," Ultratech Cement had said.
"The acquisition is subject to the approval of shareholders and creditors, sanction of the Scheme of Arrangement by the High Courts, approval of the Competition Commission of India and all other statutory approvals," it had added.
Ultratech had said in December last year that its board has approved the acquisition of JAL's Bela unit which has 2.1 million tonnes per annum (mtpa) clinker and 2.6 mtpa cement grinding capacity.
The other unit, located at Sidhi, has 3.1 mtpa clinker and 2.3 mtpa cement grinding capacity. Both units have a total of 180 MW power generation capacity.
