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Orient Cement has called off the agreement to acquire two entities, Bhilai Jaypee Cement and Nigrie Cement Grinding Unit, from Jaypee group firms for a total consideration of Rs.1,946 crore.
The company in on May 31 last year, had signed a share purchase agreement (SPA) with Jaiprakash Associates Ltd (JAL), for acquisition of 74% equity shares of Bhilai Jaypee Cement Ltd, from JAL. It also signed a business transfer agreement (BTA) with, Jaiprakash Power Ventures Ltd (JPVL) and JAL, for acquisition of Nigrie Cement Grinding Unit, as going concern from JPVL.
As per the provisions of the SPA and the BTA, either party can cancel the agreement if the closing does not take place within expiry of 12 months, from date of execution of the SPA and the BTA.
In a regulatory filing the company stated, “Since the closing has not been achieved within said period of 12 months, the company has terminated the SPA and the BTA with notice to other parties.” Further, it added that the, SPA and the BTA stands terminated.
