Dalmia Cement (Bharat) Ltd (DCBL) has acquired 74% stake in Bokaro Jaypee Cement Ltd (BoJCL), which is a joint venture between Jaiprakash Associates Ltd and Steel Authority of India Ltd (SAIL). Through the current acquisition, DCBL has escalated its current cement capacity, comprising of subsidiaries and associates, to 20 million tonnes per annum (MTPA).
Commenting on the recent acquisition, Mahendra Singhi, Group CEO-Cement, DCBL said, “We are delighted to associate with one of India’s finest infrastructure players. The transaction was completed in a record time with excellent chemistry and co-operation between the professional teams of JAL and DCBL.”
The total enterprise value is Rs 1,150 crore. BoJCL is a 2.1 MTPA cement unit located at Bokaro in Jharkhand. The unit has 30 year long term clinker supply agreement with Jaiprakash Associates and 30 year slag supply arrangement with SAIL. According to the officially disclosed information, the said acquisition will be funded through a mixed bag of debt and internal accruals.