ICICI Bank-led consortium concludes largest asset resolution; JP assets sold
By Rahul Oberoi
In one of the largest asset resolution in the country so far, an ICICI Bank-led consortium of banks on Thursday concluded the sale process of the debt-ridden Jaiprakash Associates (JAL) and Jaypee Cement to UltraTech Cement.
The decision to sell the cement business to reduce JAL and JCCL’s debt was taken more than a year ago. The transaction was valued at Rs 16,189 crore.
According to statement from ICICI Bank, with this sale, part of the debt of Jaiprakash Associates and Jaypee Cement has been transferred from a stressed account to an AAA-rated company.
“This is the largest asset resolution in the country so far and I hope this landmark transaction will pave the way for more such resolutions. This is the largest transaction in India’s cement industry, thus far,” Chanda Kochhar, Managing Director and Chief Executive Officer, ICICI Bank, said in a release.
Shares of JAL rose 12.22 per cent to Rs 22.50 in Thursday’s trade. On the other hand, UltraTech Cement slipped 0.33 per cent to Rs 3,945.
For the quarter ended March 31, 2017, Jaiprakash Associates reported a net loss of Rs 1882.40 against a net loss of Rs 1,387.30 crore reported for the corresponding quarter last year.
Net sales of the company for the quarter under review slipped 9 per cent on a year-on-year basis to Rs 1,720.45 crore.
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Via:: Economic Times – Stocks