ITC has entered into a Business Transfer Agreement (BTA)
with Aditya Birla Real Estate (ABREL) for acquisition of ABREL’s pulp and paper
business operated under the name of ‘Century Pulp and Paper’ (CPP), along with
the assets, liabilities, contracts, employees etc. (Undertaking), as a going
concern on a slump sale basis, subject to the condition’s precedent specified
in the BTA.
Established in 1984 at Lalkuan (Nainital, Uttarakhand), CPP
is a well-established player in the Indian Paper industry with an installed
capacity of 4.8 lakh MT per annum. The acquisition is in line with the
company’s strategy to drive the next phase of growth in its Paperboards and
Specialty Papers Business by expanding capacity at a new location, given the
limited scope for expansion at the existing facilities. Lumpsum consideration
of up to Rs 3,500 crore on a cash-free debt-free basis, will be payable on
Closing, subject to adjustments in accordance with the terms and conditions set
out in the BTA. The transaction is expected to be consummated in about 6
months, subject to receipt of statutory approvals and fulfilment of the
conditions laid down in the BTA.
ITC has business a interests in cigarettes, hotels, paperboards and specialty papers, packaging, agribusiness, packaged foods and confectionery, information technology, branded apparel, personal care, stationery, safety matches and other FMCG products.
Source Ace Equity
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