New Delhi: In a twist to the auctioning of Binani Cement, Aditya Birla Group’s UltraTech Cement on Monday said it will buy the defaulter’s stressed assets by providing Rs 7,266 crore to its parent company.
The move comes days after Dalmia Cement said its Rs 6,350 crore bid to buy Binani Cements (BCL) has been accepted by the lenders.
Besides offering Rs 6,350 crore, Dalmia had also offered 20 per cent equity in Binani to the lenders. Binani Industries (BIL) said in a regulatory filing that its board on Monday decided to apply to the NCLT to terminate the insolvency proceedings commenced against its subsidiary BCL.
“In consideration thereof, upon the termination of the insolvency proceedings of Binani Cements, the company has agreed and concluded in-principal commercial understanding to sell its entire 98.43 per cent shareholding interest in BCL to UltraTech Cements Ltd,” BIL said in a regulatory filing.
The development came after the company received the backing from UltraTech Cement to support it and BCL with funds required to pay off dues of the lenders.
Earlier in the day, UltraTech said that BIL —the promoter firm of BCL — had approached it for arranging funds to pay-off the lenders.
The company’s board agreed to issue ‘comfort letter’ to provide Rs 7,266 crore in return for 98.43 per cent stake in Binani Cement. “The board of directors at its meeting held today after considering the request made by BIL has agreed to issue the comfort letter confirming that the company will provide funds amounting Rs 7,266 crore being the amount it had offered to the CoC in terms of the resolution plans submitted by it for acquiring BCL,” said UltraTech Cement.