Jaiprakash Associates may sell 51 percent stake in its cement operations in Gujarat to the Irish firm CRH at an enterprise value of about Rs 4,200 crore, media reports indicate.Talks between both the parties are at an advanced stage and the Irish firm may secure a right to increase its holding to 75 per cent at a pre-determined price. The enterprise value of Jaypee Cement Corp, which houses two plants in Sewagram and Wanakbori-each having a capacity of 2.4 million tonne-includes debt of about Rs 1,800 crore. The deal will help Jaiprakash Associates pare its debt by about Rs 1,800 crore and will also infuse fresh cash of about Rs 1,200 crore in the company.The company has a consolidated debt of about Rs 45,000 crore. While the Gujarat transaction is near closure, CRH and Jaiprakash Associates continue to be in discussion for the Andhra Pradesh cement unit, reports indicate.Some other buyers have also evinced interests in this unit, which has an annual capacity of five million tonne. The valuation for the Gujarat plants translates to about $160 per tonne, but that for the Andhra Pradesh unit is expected to be slightly lower.
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