The Jaypee Group has announced the signing of a binding agreement to sell its cement business to Dalmia Cement (Bharat) for Rs 5,666 crore (around $687 million).
The binding agreement was signed by Jaiprakash Associates Limited (JAL) and its associate company, namely, Jaiprakash Power Ventures Limited.
The deal includes cement plants with a capacity of 9.4 million tonnes, clinker plant with a capacity of 6.7 million tonnes and a 280MW thermal power plant.
The plants are are located in Madhya Pradesh, Uttar Pradesh, and Chhattisgarh, the company said.
Proceeds from the sale will be used to repay the debt of Jaiprakash Associates.
This is the second asset sale between the Jaypee Group and the Dalmia Group.
Earlier in 2015, the Jaypee Group had sold controlling stake in cement units with total capacity of 2 million tonne per annum (MTPA) to the Dalmia Group.
The group has been taking several steps to reduce debt to avoid an insolvency bid by its lenders.
Between 2014 and 2017, Jaiprakash Associates divested cement assets of more than 20 MTPA capacity to UltraTech Cement.
Between 2014 and 2017, Jaiprakash Associates sold cement assets with a capacity of over 20 million tonnes per annum to UltraTech Cement.
