The shares of
Jaiprakash Associates Ltd jumped 6.1% following the signing of a memorandum of understanding (MoU) with UltraTech Cement, according to which, the latter will buy two cement plants of Jaiprakash Associates in Madhya Pradesh.
The MoU is one of the many steps that the
Jaypee Group has been taking to reduce debt, which was Rs 65,000 crore as on March 31, 2014. According to media estimates, the debt would now come down to about Rs 44,000 crore after the MoU implemented.
The shares of UltraTech Cement were 2.7% higher at Rs 2610. As per report in The Economic Times, the
Aditya Birla Group company is likely to sign a ‘definitive agreement’ after finalising a ‘due diligence process,’ which is expected to commence shortly.
According to a press release issued by UltraTech Cement, the total enterprise valuation of the transaction, which includes debt, is Rs 5,400 crore.
