India's UltraTech agrees $1.11 bln deal to buy Binani Cement

BIL Vyapar

19/03/2018 12:36

MUMBAI, March 19 (Reuters) - India's top cement maker
UltraTech Cement Ltd  ULTC.NS  said on Monday it had struck a
72.66 billion rupees ($1.11 billion) deal to buy Binani Cement
Ltd, which is being pursued in bankruptcy court and has received
a bid from another group.
    UltraTech, part of the Aditya Birla conglomerate, said
Binani Cement's parent Binani Industries  BINZ.NS  was seeking
termination of the insolvency proceedings against the cement
unit and had approached UltraTech to arrange funds for
paying-off bank debts and other liabilities.
    UltraTech's announcement comes days after a group comprising
cement maker Dalmia Bharat  DALA.NS  and a fund backed by Bain
Capital and India's Piramal Enterprises  PIRA.NS  said its bid
for Binani Cement had won approval from the company's panel of
creditors. http://bit.ly/2ppoTYH
    UltraTech's latest offer will give it 98.43 percent of
Binani Cement, the company said, adding a deal will only be
concluded at the end of bankruptcy proceedings against Binani.
    UltraTech also said it had issued a letter of comfort to
Binani confirming that it would provide funds for paying
financial creditors, for the settlement or payment to trade
creditors, and for payment of the corporate insolvency
resolution process.

($1 = 65.1850 Indian rupees)

 (Reporting by Sankalp Phartiyal, editing by Louise Heavens)
 ((sankalp.phartiyal@thomsonreuters.com; +91-22-61807186;
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