UltraTech Cement, Shree Cement and Piramal-Bain’s stressed asset investment fund are in a race to acquire the stressed Binani Cement and have made aggressive bids, as per media reports. Earlier this month, there was news of Dalmia Bharat entering into an agreement with Piramal Bain Resurgence fund to bid for Binani. Binani Cement, with a total operating capacity of 11.25 MTPA in India, China and Dubai, and with good limestone reserves in Rajasthan makes it an attractive acquisition bet.
Binani Cement was sent to the National Company Law Tribunal (NCLT) in mid-2017 after the company failed to repay its debt due. The resolution plans from potential bidders closed on December 22, 2017, and the process is estimated to be finished on January 22, 2018. The lenders are expecting the bid to be higher than the company’s total debt of INR 3,628 crore.
UltraTech and Shree Cement are looking for capacity expansion opportunities, whereas, the Piramal-Bain is looking for opportunities for its USD 1bn stressed asset fund.
(Source: www.indiainfoline.com)
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