India: Dalmia Bharat, UltraTech & Shree Cement in race to buy Jaypee’s cement business

Visual from Jaypee Group website

Aditya Birla’s flagship company UltraTech, KKR-backed Dalmia Bharat and Shree Cement have emerged as potential buyers of Jaypee Group’s cement business at an enterprise valuation of close to Rs 19,000 crore, as per a report in The Economic Times.

Jaypee group has learnt to have approached a few other bulge-brackets private equity firms too for the proposed sale of its cement business, listed under Jaiprakash Associates (JPA). The proceeds will be used by JPA to retire a part of its Rs 61,285 crore debt held in 2014-15, down from Rs 72,599 crore in 2013-14.

The company plans to divest the entire 39.38 per cent stake held by promoters as part of the sale process followed by a mandatory public offer to non-promoter shareholders. ICICI Securities has been appointed by Jaypee Group to manage the formal sale process.

JPA is currently sitting on a cement making capacity of 14.2 million tonnes. The rest, including the 5 million tonne Balaji Cement, are housed under subsidiaries, joint ventures or group entities. The company had earlier sold two cement units in Gujarat and Madhya Pradesh to UltraTech for Rs 3,800 crore and Rs 5,400 crore, respectively.

Credit Suisse in a recent report rated Jaypee Group among the top 10 most indebted Indian conglomerates. The company is currently under pressure from its lenders to sell assets and restructure debt. Creditors led by ICICI Bank have set the deadline of March 31, 2016, for repayment of the outstanding amount.

Also Read: India: Debt-laden Jaypee Group in talks with infra funds to divest expressway project

India: Jaiprakash Associates to sell wind power plants in Maharashtra, Gujarat

JSW Energy buys Jaiprakash Power’s two hydropower projects

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.