Dalmia Bharat on Friday said it will engage with the interim resolution professional (IRP) of Jaiprakash Associates Ltd (JAL) regarding the acquisition of the latter’s cement assets. The company, which had announced acquisition of the cement almost 18 month back, however, it still remains incomplete, because of the ongoing discussion between JAL’s lenders and an arbitration with UltraTech.
“This is in continuation of our earlier disclosures… regarding entering into various agreements viz. framework agreement, definitive agreements, share purchase agreement and long term lease agreement by Dalmia Cement (Bharat) Ltd, wholly owned subsidiary of the company for acquisition of the cement, clinker and power plants from Jaiprakash Associates Ltd and its associates,” Dalmia Bharat Ltd said in a regulatory filing.
“DCBL would be engaging with Interim Resolution Professional and the Company will keep stock exchanges informed about any update/development in the matter,” it said.
Earlier, this week, the Allahabad bench of the National Company Law Tribunal (NCLT) had directed initiating of insolvency proceedings against JAL.
Suspending the JAL board, it had appointed an IRP to manage the affairs of the debt-ridden company, as per the provisions of the Insolvency & Bankruptcy Code (IBC).
In December 2022, Dalmia Bharat announced the acquisition of the cement assets of Jaypee Group’s flagship company Jaiprakash Associates Ltd and its associate firms at an enterprise value of Rs 5,666 crore.
In April 2023, a definitive agreement was signed between Dalmia Bharat and JAL to acquire the cement business as per the announcement.
However, the deal still faces hindrances because of pending discussions of banks and the National Asset Reconstruction Company Ltd (NARCL).
Besides, an arbitration is also going on between JAL with UltraTech, over Dalla Super Cement’s (formerly known as JP Super Cement’s) assets in Uttar Pradesh.
