UltraTech to buy Binani Cement

New Delhi, March 19 

In a new twist to the auctioning of Binani Cement, Aditya Birla Group’s UltraTech Cement on Monday said it will buy the loan defaulter’s stressed assets by providing Rs 7,266 crore to its parent company.

The move comes days after rival Dalmia Cement said its Rs 6,350-crore bid to buy Binani Cements Ltd (BCL) has been accepted by the lenders.

Besides offering Rs 6,350 crore, Dalmia had also offered 20% equity in Binani to the lenders.

Binani Industries Ltd (BIL) said in a regulatory filing that its Board on Monday decided to apply to the National Company Law Tribunal (NCLT) to terminate the insolvency proceedings commenced against its subsidiary BCL.

“In consideration thereof, upon the termination of the insolvency proceedings of Binani Cements, the company has agreed and concluded in-principle commercial understanding to sell its entire 98.43% shareholding interest in BCL to UltraTech Cement Ltd,” BIL said in a regulatory filing.

The development came after the company received the backing from UltraTech Cement to support it and BCL with funds required to pay off dues of the lenders.

Earlier in the day, UltraTech said in a statement that BIL — the promoter firm of BCL — had approached it for arranging funds to pay off the lenders.

The company’s Board agreed to issue ‘comfort letter’ to provide Rs 7,266 crore in return for 98.43% stake in Binani Cement. — PTI

Rs 7,266-crore deal

• The move comes days after rival Dalmia Cement said its Rs 6,350-crore bid to buy Binani Cements Ltd has been accepted by the lenders
• Besides offering Rs 6,350 crore, Dalmia had also offered 20% equity in Binani to the lenders
• The company’s Board agreed to issue ‘comfort letter’ to provide Rs 7,266 crore in return for 98.43% stake in Binani Cement.