Wednesday, November 30, 2022
HomeBusinessAdani Group 'not evaluating' proposal for acquiring Jaypee Cement

Adani Group ‘not evaluating’ proposal for acquiring Jaypee Cement

Adani Group said Friday that they are not evaluating any proposal for the acquisition of Japyee Cement. Previous reports stated that the Gautam Adani-backed Group is in talks to buy Jaypee Group’s debt-laden cement business for approximately 5,000 crore ($606 million). The Group’s flagship company, Adani Enterprises, has provided clarity on the deal on the stock exchanges.

In his application, Adani said: “The company is not evaluating any such proposal and therefore we are not in a position to comment on the accuracy of the said media report.”

The takeover rumors of Adani Group-Jaypee Cement have been around in recent days.

Earlier, on Oct. 10, Bloomberg reported that Adani’s conglomerate is in advanced talks with the infrastructure-focused Jaiprakash Group to buy their cement business for about rupees 50 billion ($606 million). It further reported that the deal is likely to include a cement grinding unit and other smaller assets of Jaiprakash Power Ventures Ltd. and Jaiprakash Associates.

On October 10, Jaiprakash Power Ventures also announced that its board of directors has decided to divest the company’s Nigrie Cement Grinding Unit, as well as other non-core assets.

Later, on Oct. 11, Jaiprakash Associates said in its scholarship application, “In light of the company’s ongoing efforts to reduce its debt, the board of directors has decided to divest the company’s major cement business.” The decision was made in a meeting on October 10.

JAL and JP Power are both part of the Jaypee Group. The companies are facing headwinds.

Last month, Adani Group emerged as the second largest cement player in India following the acquisition of ACC and Ambuja Cements. Holcim closed the deal with Adani on September 16 by selling his entire 63.11% stake in Ambuja Cements, which owns a 50.05% stake in ACC, as well as his direct 4.48% stake in ACC. The cash proceeds for Holcim were $6.4 billion.

See also  Auto stock hits all-time high on strong Q1 results. Should you buy?

On Friday, Jayprakash Associates fell nearly 7.4% to trade on 10.55 a.m. each around 3.17 p.m. JP Power trades on 7.84 each on BSE flat compared to the previous day’s close of 7.82 each.

At the same time, Adani Enterprises shares performed on 3,209 per person down 0.76% on BSE. The company’s market capitalization is around 3,65,826.36 crores.

Check out all company news and updates on Live Mint. Download the Mint News app for daily market updates and live business news.

More or less

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Recent Comments