UltraTech Cement has completed the acquisition of cement units of Jaypee Cement Corporation (JCCL) in Gujarat. UltraTech informed the Bombay Stock Exchange that the acquisition process had been completed and became effective from June 12, 2014.
In September 2013, UltraTech had acquired the cement unit of JCCL comprising an integrated cement unit at Sewagram and a grinding unit at Wanakbori for a sum of Rs.3,800 crore.
A demerger implementation committee was appointed by the board of directors of UltraTech and had earlier allotted 1.14 lakh equity shares of the company as fully-paid shares to shareholders of JCCL as per the terms of the scheme.
According to an UltraTech statement, since the actual net working capital is higher than the net working capital as on the closing date in terms of the scheme, UltraTech had to discharge the amount equal to the difference by issuance of equity shares to shareholders of JCCL.
Accordingly, the demerger implementation committee at its meeting held on August 28, allotted 27,261 equity shares of the company as fully paid-up to shareholders of JCCL being the additional shares in terms of the scheme. UltraTech had acquired JCCL’s units with a capacity of 4.8 million tonnes. Post-acquisition, UltraTech’s total capacity in India stands at 58.8 million tonnes and including overseas capacity at 62 million tonnes.
