02/08/2012 - MUMBAI: Aditya Birla Group Chairman Kumar Mangalam Birla during the Annual General Meeting of Century Textile in Mumbai - PTI Photo. [
Center-Center-DelhiNEW DELHI: Aditya Birla Real Estate Ltd (ABREL) will sell its pulp and paper business – Century Pulp and Paper (CPP) -- located at Lalkuan in Uttarakhand by way of slump sale to ITC Limited for Rs 3,498 core.
ABREL said in a statement on Monday that the divestment of the pulp and paper undertaking is a value unlocking exercise for ABREL. “It will further enable the company to pursue growth opportunities in its core business—real estate,” it said.
Speaking on the transaction, ABREL managing editor RK Dalmia said: “The divestment of the Pulp and Paper undertaking by ABREL is a strategic portfolio choice and unlocks value for the shareholders of ABREL. The company has embarked on a transformational growth phase, and this move will further sharpen its focus on real estate to drive sustained value creation.”
He added that over the years, CPP has become synonymous with strong performance and high sustainability standards. “To take it to the next level in size and value, the company is pleased to have found in ITC, a credible and well-established player,” he said.
The lump sum consideration is subject to certain adjustments as per the agreement. The transaction is contingent on necessary statutory and regulatory approvals including approvals from the Competition Commission of India (CCI) and shareholders.
JM Financial Limited acted as the exclusive financial advisor and AZB & Partners acted as the legal advisor to ABREL for this transaction.
Aditya Birla Real Estate, as its key business, develops premium residential housing in key markets. The company is developing land parcels both through outright purchases as well as asset light Joint Ventures apart from developing its own land parcels. While, the ITC Group is a major player in paperboards and specialty paper business.