Cement major Birla Corporation Ltd., the flagship Company of the M P Birla Group will acquire Jojobera and Sonadih cement plants from Lafarge India Private Limited (Lafarge India) for an enterprise value of Rs.5000 crore. The acquisition would be funded through existing cash reserves and incremental debt. KRISCORE Financial Advisors and SBI Capital Markets Limited were financial advisors and Nishith Desai Associates acted as counsel to Birla Corp for this transaction. The acquisition is subject to approval of Competition Commission of India and other relevant regulatory authorities.
Birla Corp, established in 1919, is part of the MP Birla Group with presence across cement and jute; cement constitutes over 90% of the company's revenues with a total operational cement capacity of -10 mtpa, it has units in Rajasthan, Madhya Pradesh, Uttar Pradesh and West Bengal. Post completion of this transaction, Birla Corp will have a total capacity of -15 mtpa. With addition of these brands to its existing basket of brands, Birla Corp will derive synergy benefits through consolidation of its capacity.
Birla Corp, established in 1919, is part of the MP Birla Group with presence across cement and jute; cement constitutes over 90% of the company's revenues with a total operational cement capacity of -10 mtpa, it has units in Rajasthan, Madhya Pradesh, Uttar Pradesh and West Bengal. Post completion of this transaction, Birla Corp will have a total capacity of -15 mtpa. With addition of these brands to its existing basket of brands, Birla Corp will derive synergy benefits through consolidation of its capacity.
