India’s National Company Law Tribunal has approved Jaiprakesh (JP) Associates’ transfer of its cement plants to UltraTech Cement.
According to a company release to the Bombay Stock Exchange, the NCLT Allahabad Bench sanctioned the scheme of arrangement “whereby the company proposes to transfer identified cement plants owned by the company and its wholly-owned subsidiary, Jaypee Cement Corp. Ltd, to UltraTech Cement Ltd.”
The transfer would be made as a ‘slump sale’ – a widely used method in India for corporate restructuring that involves the sale or transfer of a complete unit or business division of a company as a ‘going concern’, including all assets, liabilities, contracts and employees.
Part of JayPee Group JP Associates announced the sale of its cement business to UltraTech last year for around INR160 billion (US$2.4 billion), according to Press Trust of India. The cement operations have a total capacity of 17.2 million tpy across five Indian states.
UltraTech Cement is India’s largest cement company and is part of the Aditya Birla Group. It currently has an installed capacity of 69.3 million tpy of grey cement and 0.56 million tpy of white cement.
Source – World Cement
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