UltraTech Cement has said that its shareholders have approved the merger of the cement business of the debt-laden JP Group with itself.
Earlier this year, the Aditya Birla Group firm announced acquisition of Jaiprakash Associates’ cement plants with a total capacity of 21.1 million tonnes per annum (MTPA) at an enterprise value of Rs 16,189 crore.
The firm, through a regulatory filing, conveyed the outcome of the court-convened meeting of the equity shareholders held on October 20, 2016.
The shareholders approved the "Scheme of Arrangement (merger) between Jaiprakash Associates (JAL) and Jaypee Cement Corporation (JCCL) and UltraTech Cement and their respective shareholders and creditors," it added.
According to the deal, UltraTech will pay Rs 16,189 crore to buy Jaypee Group’s cement operations that have a total capacity of 17.2 MTPA spread across Uttar Pradesh, Madhya Pradesh, Himachal Pradesh, Uttarakhand and Andhra Pradesh.
In addition, it will acquire a 4 MTPA grinding unit being constructed in Uttar Pradesh.