Reliance Infra in advanced talks to sell cement biz

Discussions on with both domestic and foreign buyers

Reliance Infra in advanced talks to sell cement biz

 Reliance Infrastructure is in the advanced stage of negotiations to sell its cement business and a deal can be announced as early as this week as the Anil Ambani-led firm tries to cut debt.

The Mumbai-based firm is in talks with buyers — both domestic and foreign — to sell its cement and road business, in which it has invested over Rs 15,000 crore, that will be utilised to cut debt and also to fund its foray into defence manufacturing.

The company is in advanced stage of negotiations with seven prospective buyers out of the initial 15 parties, and the deal can be finalised anytime now, a source said, adding it can be announced as soon as Ambani returns from Russia and could be this week also.

The buyers include Blackstone, Carlyle and KKR. Ambani, who is accompanying Prime Minister Narendra Modi on his two-day Russia visit, is likely to return on Friday night. If this gets delayed, the final deal can be announced early next week, a person in know of the development said.

“The cement deal is in the range of Rs 5,000-6,000 crore, and the company expects to get close to 50 per cent of the amount after paring the debt,” he added.

Reliance Cement, which has an annual capacity of 5.5 million tonnes, started operations in 2007. It has plants at Maihar in Madhya Pradesh (2.8 million tonnes per annum), Kundanganj in Uttar Pradesh (2.2 MTPA) and Butibori in Maharashtra (0.5 MTPA).

Reliance Infrastructure, with a net worth of over $4 billion, is trying to sell its non-core assets, including the road business to pare debt and fund expansion in the defence manufacturing sector, which it feels will be the primary driver for future growth.

Rel Infra surges 8%

Stocks of Reliance Infrastructure gained nearly eight per cent on Thursday following reports that the company is in the advanced stage of negotiations to sell its cement business.

The deal is expected to be announced this week as the Anil Ambani-led firm tries to cut debt. The stock climbed 7.69 per cent to settle at Rs 493.05 on BSE. During the day, it rose by 8.33 per cent to Rs 496. On NSE, it surged 7.72 per cent to close at Rs 493.20. The company added Rs 926.72 crore to Rs 12,966.72 crore in market valuation.

Strikes a deal

The firm is in talks to sell its cement and road business, in which it has invested over   Rs 15,000 cr
It is in advanced stage of negotiations with seven prospective buyers
The buyers include Blackstone, Carlyle and KKR
 The cement deal is in the range of Rs 5,000-6,000 cr

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