After Prime Minister Narendra Modi urged to make India self-reliance, many companies have come forward to join this campaign. In the series of boycotting Chinese products and become self-reliant, UltraTech Cement has sold its entire holding in its Chinese unit for $120 million, the Aditya Birla Group said in a statement to the stock exchange. The decision of UltraTech has come out when the whole country is standing by the government to take the revenge of the martyred soldiers in the Indo-China border near Galwan valley.
Simultaneously, Krishna Holdings, a subsidiary of UltraTech Nathdwara Cement incorporated in Singapore, will devest its entire share in Shandong Binani Rongan Cement, the company said on July 7. The officials said, “In terms of the agreement, Krishna will devest its entire shareholding at an enterprise value of RMB 845 million working capital adjustments on closing, equivalent of approximately US $120 million subject to customary closing conditions and regulatory approvals in compliance with the local laws”. It had a 92.5 percent share in the company.
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The Chinese company incorporated with UltraTech Cement in 2018 after acquiring the Binani Cement. In which both of them had the 70:30 partnership between Binani Cement and China’s Rizhao Rongan Construction Materials.
Binani cement was dragged to insolvency proceedings in July 2017 after it defaulted on Rs. 3,900 crore loan to a group of lenders that include Edelweiss Asset Reconstruction Company, State Bank of India, Canara Bank and Bank of Baroda.
The Dalmia consortium initially emerged as the preferred bidder with an offer of Rs. 6,300 crore. However, UltraTech sweetened its initial bid twice to close the deal at Rs. 7,950 crores.
During this, UltraTech had acquired 6.25 million tonne plant of Binani Cement in Rajasthan that comprises an integrated cement unit with the capacity of 4.85 million tonnes and a 1.4 million tonne spilled grinding unit which has integrated with itself fully.