Jaiprakash Associates to acquire hotel, cement units

Jaiprakash Associates to acquire hotel, cement units

Mumbai: Indian construction firm Jaiprakash Associates said on Monday its board has approved the acquisition of Jaypee Hotels, Jaypee Cement and Gujarat Anjan Cement.

It will also acquire group firm Jaiprakash Enterprises, issuing three shares for every share held.

In a statement to the stock exchange, Jaiprakash said shareholders of Jaypee Hotels, the listed entity, will get one share in Jaiprakash Associates for every share held.

The mergers will be effective retrospectively from 1 April.

Shareholders of Jaypee Cement will get one share in Jaiprakash, for every 10 shares held. Gujarat Anjan Cement shareholders will get one share for every 11 shares held.

The group operates a 9 million tonne cement capacity in central India, it said on its website.

Jaiprakash Associates held 72.18% in the Jaypee Hotels unit as on 30 September. Details of shareholdings in the other firms were not immediately available.

Ahead of the announcement, Jaypee Hotels shares ended 4.56% up at Rs84.85. Shares in Jaiprakash Associates, which has a market cap of $2.3 billion, closed down 2% at Rs87.40.