Anil Ambani’s Reliance Infrastructure sells Cement business to Birla Corp

relianceBirla Corporation Limited said it agreed to buy the entire cement business of Reliance Infrastructure Ltd for a valuation of Rs 4800 crores including debt.

The debt portion of the valuation will not go to Reliance Infrastructure. The equity value of Reliance Cement was not disclosed.

The two companies have agreed that Birla Corp shall acquire all of the shares of Reliance Cement Company Pvt. Ltd. (Reliance Cement).

The acquisition, subject to approval of Competition Commission of India and other relevant regulatory authorities, will be funded through existing cash reserves and incremental debt, Birla Corp said.

“This acquisition will provide Birla Corp ownership of high quality assets taking its total capacity from ~ 10 MTPA to ~15.5 MTPA strengthening its presence in the high growth Central region. The company’s expansion potential will also be enhanced – with mineral concessions in states of MP, Maharashtra, Rajasthan, Karnataka, Andhra Pradesh and Himachal Pradesh – to emerge as a pan-Indian player in the foreseeable future,” it added.

Reliance Infrastructure is one of the key companies of the Anil Ambani group and is engaged in construction and infrastructure. The group has been trying to reduce debt by selling non-core businesses. It has also recently sold real estate belonging to Reliance Communications.

Reliance Cement has three cement units, an integrated cement plant at Maihar (Madhya Pradesh) and grinding units at Kundanganj (Uttar Pradesh) and Butiburi (Maharashtra). Birla Corp will also benefit from Reliance Cement’s strategically located raw material sources, captive coal mine, optimum manpower, efficient operating parameters and technical capability for producing top end quality product.

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 units in Rajasthan, Madhya Pradesh, Uttar Pradesh and West Bengal.

Mr. Harsh Lodha, Chairman of Birla Corp, said: “I am very pleased to announce this very important transaction in Birla Corp’s history. Reliance Cement fits our plans to grow the business profitably very well and offers lucrative prospects for Creating Synergy with existing operations. It provides an excellent platform for increasing our footprint in existing as well as new geographies. ”



Idea Cellular – Vodafone merger announcement soon? Idea Spectrum HoldingIdea Cellular has put off the trimonthly meeting of its board of directors scheduled to take place tomorrow, raising speculation that it may soon announce a merger or deal with Vodafone India.The meeting was supposed to take on-board results  of the telecom operators' working the three months from October to December.After t...
Tata Steel acquires Brahmani River Pellets at Rs 900 cr EV Tata Steel Limited said that it has executed definitive agreements to acquire 100% equity shares of Brahmani River Pellets Limited (BRPL) from Aryan Mining and Trading Corpn Private Limited (AMTC) and other companies in the Moorgate Industries Group (MIG).The transaction is based on an enterprise value of Rs. 900 crores plus closing adjustments and ...
Reliance Communications sells its towers to Brookfield for $1.6 bln Reliance Communications Ltd announced the signing of binding agreements with Brookfield Infrastructure for the sale of nationwide tower assets to Brookfield Infrastructure Partners LP and its institutional partners.RCOM will receive an upfront cash payment of Rs. 11,000 crore (US$ 1.6 billion).RCOM will also receive Class B non-voting shares in t...
Fitch downgrades Anil Ambani’s Reliance Communications over Aircel merger Fitch Ratings has downgraded India-based Reliance Communications Limited's long-term rating to 'B+' from 'BB-'."It is our view that Rcom's plans to demerge its wireless business into a 50:50 joint-venture and sell 51% of its tower business, Reliance Infratel Ltd (Infratel), will be negative for Rcom's creditors, even if receipts from the tower transactio...
Cipla redraws Iran plans with new agreement, to invest Rs 121 cr Cipla said its wholly owned subsidiary of the Company in Netherlands will set up a 75% joint venture with Ahran Tejarat Company for manufacturing and marketing of pharmaceutical products in Iran.An earlier agreement executed by the Company with the Iranian firm has been terminated.The total investment will be euro 16.875 million, which comes to about...
Anil Ambani’s Reliance Infra sells transmission assets to Adani Following on the heels of its announcement to sell its transmission assets to Adani Group, Reliance Infrastructure today said it has signed a share purchase agreement with Adani Transmission for the sale of 100% of its Western Region System Strengthening Scheme Transmission Assets."SPA for Parbati Koldam Transmission Company Limited (PKTCL) shall be exe...
Anil Ambani Group sells 2 TV channels, 59 FM stations to Zee Subash Chandra's Zee Group is buying the general entertainment channels and FM radio business of the Anil Ambani group.Because of lock-in provisions, the acquisition of 59 FM radio licenses will be done in two stages.The FM channels are being broadcast under the brand “92.7 BIG FM”, reaching to 45 cities, 1200 towns and over 200 million people.It...
Anil Ambani group sells Big Magic, Ganga to Zee Entertainment Zee Entertainment Enterprises said it is acquiring the General Entertainment Broadcasting Business of Reliance Big Broadcasting Private Limited, Big Magic Limited & Azalia Broadcast Private Limited, all part of Anil Ambani led Reliance Group.The TV Broadcasting business of Reliance Group Entities currently comprises two operational general entertainm...
Bharti Airtel merges Bangladesh unit with Robi Axiata Bharti Airtel Limited announced the completion of the merger of its subsidiary Airtel Bangladesh with Robi Axiata Limited (Robi Axiata), a unit of Axiata Group Berhad. The merger was completed following the fulfilment of the condition precedents to the Agreement and filing of the merger order with the Registrar of Joint Stock Companies and Firms of Bangl...
RCom’s voice subscribers fall 30% in one year on VLR count Anil Ambani Group's Reliance Communications has seen a sharp fall in its subscriber numbers after the migration of its CDMA network to LTE.According to the latest numbers released by the company, the total number of voice customers fell by 11.6% in the three months from June to September. Voice revenue fell 8.3% from the previous quarter.If we compar...
Future Retail to pay Rs 273 cr in stock for Heritage Foods’ retail biz Heritage Foods Ltd said it agreed to sell its food retail business to Future Retail Ltd in return for shares in the Kishore Biyani firm.The businesses covered by the deal are grocery and food retail, agricultural sourcing, processing and marketing, and bakery.As part of the deal, Future Retail will issue about 1.80 cr shares to the shareholders of He...
Reliance Communications to sell towers to Brookfied Anil Ambani-promoted Reliance Communications has agreed to sell its tower assets to Brookfield Asset Management. RCOM will receive an upfront cash payment of Rs. 11,000 crore from the proposed transaction.It has signed a non-binding Term Sheet with Brookfield Infrastructure Group in relation to RCOM’s nationwide tower assets and related infrastructure. ...
Anil Ambani’s Reliance Defence and Engineering to enter the oil rig business Reliance Anil Ambani Group said its unit Reliance Defence and Engineering Ltd partnered with US-based oil rig comopany ALLRIG to provide jack-up rigs, drilling rigs and other floating fixed oil & gas assets in India."The association will be helpful in providing solutions for class approved spares, repairs, upgradation and warranty support for critica...
RCom gets Bombay High Court approval for MTS merger Reliance Communications said its merger with Sistema Shyam Teleservices has been approved by the Bombay High Court.The Anil Ambani company is merging with SSTL, which operates telecom services under the MTS brand in India.After the merger, RCom shareholders will hold 90% of the resulting entity, with the remaining held by MTS.After this merger, t...
Cognizant to help transform Future Group’s consumer business Cognizant said that it has entered into a partnership with Future Group, an Indian multi-brand retailer, to transform its consumer goods business, Future Consumer Limited (FCL), into a connected enterprise.“In an era where data, insights and supply chain intelligence are crucial ingredients for turning success into market leadership, Cognizant’s technolo...