Jaypee group stocks surge on Rs 16,200-crore cement biz deal

NEW DELHI: Shares of Jaypee group firms ended higher by 28 per cent after Jaiprakash Associates approved the sale of its cement business to UltraTech Cement. The total enterprise value of the deal is Rs 16189 crore while UltraTech will pay an additional amount of Rs 470 for the 4 MTPA grinding unit, which is under implementation in UP.

JP Associates closed with gains of 28 per cent while those of Jaypee Infratech and JP Power surged 16 and 11 per cent, respectively.

There were reports that JPA lenders led by State Bank of India pushed UltraTech to revise its offer after two other suitors - JSW and KKR - joined the race.

After the deal, Jaypee group will retain an aggregate cement manufacturing capacity of 10.60 MTPA with plants in UP, MP, Andhra Pradesh and Karnataka, the company said in a filing to BSE.

The release said the group was determined to reduce its debt through a proactive divestment initiatives to help it "tide these current turbulent times caused by economic slowdown in “the country.”