Aditya Birla Real Estate (formerly Century Textiles and Industries) has sold the pulp and paper undertaking at Lalkuan in Uttarakhand to ITC for ₹3,498 crore.
The board at its meeting held on Monday, approved the execution of the business transfer agreement for divestment of the pulp and paper undertaking at Uttarakhand by way of a slump sale to ITC, said ABREL in a statement on Monday.
The transfer of the business will be for a lump-sum cash consideration of ₹3,498 crore to be paid by ITC to ABREL, it added.
The divestment of the pulp and paper undertaking is a value unlocking exercise for ABREL and will further enable the company to pursue growth opportunities in its core real estate business, said ABREL.
Transformational growth phase
RK Dalmia, Managing Director, ABREL, said 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.
“Over the years, Century Pulp and Paper has become synonymous with strong performance 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,” he added.
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 and shareholders.
JM Financial Ltd acted as the exclusive financial advisor and AZB & Partners acted as the legal advisor to ABREL for this transaction.
