Orient Cement calls off deal

CK Birla Group firm Orient Cement has terminated the agreement to acquire two entities, BhilaiJaypee Cement and Nigrie Cement Grinding Unit, from Jaypee group firms for a total consideration of Rs 1,946 crore. On May 31 last year, Orient Cement had signed a share purchase agreement (SPA) with Jaiprakash Associates Ltd (JAL), for acquisition of 74 per cent equity shares of BhilaiJaypee Cement Ltd from JAL. A business transfer agreement (BTA) was also signed between Orient Cement, Jaiprakash Power Ventures Ltd (JPVL) and JAL, for acquisition of Nigrie Cement Grinding Unit, as going concern from JPVL. BhilaiJaypee Cement has a cement manufacturing capacity of 2.20 million tonnes (MT) and 1.10 MT of clinker. In 2015-16, it had a turnover of Rs 399.27 crore. While, Singrauli, Madhya Pradesh-based Nigrie Cement Grinding Unit has a production capacity of 2 MT. It had a turnover of Rs 90.70 crore in 2015-16.