India: Reliance Infrastructure completes 100% sale of cement unit to Birla Corp.

Photo: Mint

Anil Ambani-led Reliance Infrastructure Ltd (R-Infra) has completed the sale of its 100 per cent shareholding in Reliance Cement Co. Pvt. Ltd (RCCPL) to Birla Corp. Ltd, the flagship company of the MP Birla Group. The deal valued the cement business at Rs.4,800 crore ($715.2 million).

R-Infra had announced its plan to monetize cement, road and telecom tower assets and the Mumbai Power business to reduce overall debt.

“The (cement) deal was announced in February 2016 and has now been completed with transfer of shares and receipt of sale consideration. The entire proceeds shall be utilized for debt reduction,” R-Infra said in a statement on Monday.

RCCPL has an integrated cement capacity of 5.08 million tonnes per annum (mtpa) at Maihar, Madhya Pradesh and Kundanganj Uttar Pradesh and a grinding unit of 0.5 mtpa at Butibori, Maharashtra.

Birla Corp., established in 1919, has a presence across cement and jute; cement constitutes over 90 per cent of the company’s revenues.

With a total operational cement capacity of 10 mtpa, Birla Corp. has units in Rajasthan, Madhya Pradesh, Uttar Pradesh and West Bengal.

SBI Capital Markets Ltd acted as the financial advisor to R-Infra for this transaction.

Reliance Group is focusing on an asset-light strategy, staying away from projects that will yield results over 20-30 years such as road development and entering new businesses such as defence, housing finance and renewable energy that have shorter gestation periods.

Reliance Group could reduce debt by more than 40 per cent if its asset sale plan goes through and the funds raised are used to pare borrowings, Mint reported on 14 December 2015.

Reliance Group companies have sued HT Media Ltd, Mint’s publisher, and nine others in the Bombay High court over a 2 October 2014 front-page story that they have disputed. HT Media is contesting the case.

Also Read

India: The story of how Birla Corp sealed cement deal with Reliance Infra

India: Birla Corp buys Reliance Infra’s cement business for $710m

SBI board clears merger with associates, India to have global top 50 bank

This story was first published on livemint.com

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.