Thursday , March 4 2021

UltraTech's offer for valid Binani Cement, says the Tribunal



The UltraTech offer of 7.266 kilograms ($ 1.01 billion) will offer 98.43 percent of Binani Cement.

The National Law Firm (NCLAT) has ruled that UltraTech Cement more than a billion dollars for Cement Unit Binani Industries Ltd was valid, UltraTech said on Wednesday. UltraTech offered the purchase of Binani Cement in March after the Binani Industries parent company joined UltraTech to arrange funds for repayment of debts and other obligations to eliminate insolvency proceedings against its unit.

NCLAT rejected a complaint by Rajputana Properties Private Ltd owned by Dalmia Bharat Ltd, saying that its offer to Binani Cement was "discriminatory" between financial and operational creditors.

"NCLAT is a step forward, but I think it's all good on board that this is not done," said Murtuza Arsivalla, a senior analyst at Kotak's institutional action in Mumbai.

Dalmia Bharat and the fund under the auspices of Bain Capitale and Piramal Enterprises submitted a bid to Binani Cement and have already received approval from the panel of creditors of the company as part of the bankruptcy proceedings.

"I believe that Dalmatia will go to the Supreme Court – I do not think it will give up without a fight, so this is still not an issue," Arsivalla added.

Binani Industries attempted to withdraw the unit from the current bankruptcy proceedings under the National Court Enterprise Code (NCLT), and the contract with UltraTech would not imply any hairstyle for creditors.

The UltraTech offer of 7.266 kilograms ($ 1.01 billion) will offer 98.43 percent of Binani Cement.

Considering the estimate that UltraTech pays for Binani Cement, it will be a withdrawal of earnings at least for 2-3 years, said Arsivalla analyst.

($ 1 = Rs 72.12)


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