The Board of Directors of Aditya Birla Real Estate Limited ("ABREL" or "the Company"), at its meeting held today, approved the execution of the business transfer agreement for divestment of the Company's Pulp and Paper undertaking situated in Lafkuan, Uttarakhand,("CPP"), by way of a slump sale to ITC Limited ("ITC"). The transfer of the business will be for a lump-sum cash consideration of Rs. 3498 Cr., to be paid by ITC to ABREL. 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.
Speaking on the transaction, Mr. R. K. Dalmia, Managing Director, Aditya Birla Real Estate Ltd, 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, "Over the years, CPP has become synonymous with strong perfonnance 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."
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 Aditya Birla Real Estate Limited ("ABREL") for this transaction.
Shares of Aditya Birla Real Estate Limited was last trading in BSE at Rs. 1969.20 as compared to the previous close of Rs. 1881.75. The total number of shares traded during the day was 20211 in over 2254 trades.
The stock hit an intraday high of Rs. 2020.65 and intraday low of 1868.30. The net turnover during the day was Rs. 38999733.00. |
