March 31, 2016 / 2:26 PM / in 4 years

India's UltraTech buys Jaiprakash cement plants in new $2.4 billion deal

Workers walk in front of an UltraTech concrete mixture truck at the construction site of a commercial complex on the outskirts of the western Indian city of Ahmedabad April 22, 2013. REUTERS/Amit Dave

MUMBAI (Reuters) - India’s UltraTech Cement Ltd (ULTC.NS) will buy Jaiprakash Associates Ltd’s (JAIA.NS) cement plants for 159 billion rupees ($2.4 billion) including debt, the companies said in a revised deal unveiled on Thursday.

The two firms had signed an accord last month under which UltraTech was to buy 22.4 million tonnes of cement capacity from Jaiprakash for 165 billion rupees, including debt.

Under the revised deal, UltraTech will buy 21.2 million tonnes of cement capacity from Jaiprakash as the companies have mutually agreed to exclude a 1.2 million tonnes a year plant in the southern state of Karnataka, they said in separate filings.

UltraTech, part of the Aditya Birla conglomerate, will have a total capacity of 91.1 million tonnes after the deal, which is expected to take about a year to consummate.

Jaiprakash has been selling assets to pare its debt. After the latest sale, it will retain cement plants with a total capacity of 10.6 million tonnes, it said.

ICICI Bank (ICBK.NS), India’s biggest private sector lender and which counts Jaiprakash among its major clients, said in a separate statement it was working with the company to further reduce its debt burden.

Reporting by Devidutta Tripathy; Editing by Alexander Smith

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