Adani Group is ‘not evaluating’ a bid to buy Jaypee Cement

According to previous reports, the Gautam Adani-backed Group is in talks to purchase Jaypee Group’s debt-ridden cement industry for roughly $606 million.

Adani Group announced on Friday that it is not considering any acquisition bid for Japyee Cement. According to previous reports, the Gautam Adani-backed Group is in talks to purchase Jaypee Group’s debt-ridden cement industry for over 5,000 crores ($606 million). Adani Enterprises, the Group’s main firm, has explained the deal on stock markets.

Adani stated in its statement, ” the Company is not evaluating any such proposal and hence we are not in a position to comment on the veracity of said media report.”

The Adani Group-Jaypee Cement takeover rumour has been circulating for a few days.

Earlier last month, Bloomberg reported that Adani’s conglomerate is in advanced discussions with the infrastructure-focused Jaiprakash Group to acquire their cement business for around 50 billion rupees ($606 million). It further stated that the transaction would most likely include a cement grinding mill and other minor assets from Jaiprakash Power Ventures Ltd. and Jaiprakash Associates.

Jaiprakash Power Ventures also stated on October 10 that the board of directors has decided to divest the company’s Nigrie Cement Grinding Unit as well as other non-core assets.

Later, in an exchange statement on October 11, Jaiprakash Associates stated, “with a view to give thrust to the ongoing efforts of the Company to reduce its debt, the Board of Directors…have decided to divest Company’s significant Cement business.” The conclusion was reached at a meeting on October 10.

JAL and JP Power are both subsidiaries of the Jaypee Group. The businesses are encountering commercial challenges.

Following the acquisition of ACC and Ambuja Cements last month, Adani Group became India’s second-largest cement player. On September 16, Holcim completed the transaction with Adani by selling its full 63.11% holding in Ambuja Cements, which holds a 50.05% investment in ACC, as well as its 4.48% direct stake in ACC. 

Jayprakash Associates fell roughly 7.4% on Friday, trading at 10.55 apiece at around 3.17 p.m. JP Power is trading at 7.84 per share on the BSE, unchanged from the previous day’s close of 7.82 per share.

At the same time, Adani Enterprises shares closed at 3,209 per share, down 0.76% on the BSE. The company’s market capitalization is around 3,65,826.36 crore.