Ultratech to buy Binani cements for rs7266 crore

UltraTech Cement has given Rs.7266 Cr, Comfort letter using which Binani Cement intends to apply for termination of insolvency proceedings.
 
 
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INDORE, India - March 20, 2018 - PRLog -- UltraTech Cement Limited, the global leader and industry major in Cement production, has said that the Company would buy Binani Cements Limited (BCL) from its promoter company Binani Industries Limited (BIL) and agreed to provide Rs.7266 crore to the company. The company also sought to complete the termination of Insolvency and Bankruptcy Code proceedings and go into definitive agreement and other customary and regulatory approvals soon.

The step comes subsequently the competitor Dalmia Cement announced its Rs6350 crore bid to buy Binani Cements Limited,  which has been accepted by the lenders. Further, offering Rs 6,350 crore, Dalmia Cement had also offered 20% equity in Binani to the lenders.

Ultra tech stated, 'The BoD at its meeting held on Monday after considering the request made by Binani Industries Ltd has agreed to issue the comfort letter confirming that the company will give funds for Rs 7,266 crore being the amount it had offered to the Committee of Creditors, in terms of the resolution plans submitted by it for acquiring Binani Cements Limited'.

UltraTech Cement is the pioneer cement major with a 92.5 million tonne installed annual capacity, and this marks the company as the 4th largest cement major in the world excluding China.

In Tuesday's, mid hours of trade, shares of Ultratech Cement was trading higher 0.16% at Rs. 3978.90 on National Stock Exchange, while shares of Binani Cement was stuck in upper circuit at Rs 98.05/ share, up by 4.98%.

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