Mumbai: Top cement maker UltraTech Cement Ltd 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 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 and a fund backed by Bain Capital and India's Piramal Enterprises said its bid for Binani Cement had won approval from the company's panel of creditors.
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)
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