The board of directors of Dalmia Cement (Bharat) (DCBL), a subsidiary of Dalmia Bharat, approved the proposed acquisition of 74% stake in Bokaro Jaypee Cement (BoJCL), a joint venture between Jaiprakash Associates (JAL) with 74% stake, and Steel Authority of India (SAIL) with 26% stake.
"The total enterprise value is Rs 11.5 billion. BoJCL is a 2.1 million tonnes per annum (MTPA) cement unit located at Bokaro, Jharkhand. It has a 30-year long term clinker supply arrangement with JAL and 30-year slag supply arrangement with SAIL," the company said.
With this acquisition, DCBL's current installed cement capacity (including subsidiaries and associates) will reach 20 MTPA, it said.
''We are delighted to associate with one of India’s finest infrastructure players. The transaction was completed in a record time with excellent chemistry and co-operation between the professional teams of JAL and DCBL'' said Mahendra Singhi, Group CEO-Cement, DCBL.
The proposed acquisition would be funded through a mix of debt and internal accruals.
Shares of the company declined Rs 9.45, or 3.86%, to trade at Rs 235.55. The total volume of shares traded was 6,128 at the BSE (Monday).