A strategic shift is underway at Aditya Birla Real Estate Ltd (ABREL). The board has permitted a Rs 3,498 crore deal to divest its Pulp and Paper unit in Lalkuan, Uttarakhand, to ITC Restricted — marking a decisive pivot again to its core focus: real estate. The sale comes because the conglomerate strikes to unlock worth and sharpen its enterprise priorities amid an aggressive enlargement drive.
The settlement between ABREL and ITC includes a lump sum consideration of Rs 3,498 crore, topic to sure changes, and hinges on regulatory approvals, together with these from the Competitors Fee of India and ABREL’s shareholders.
In a press launch issued on March 31, ABREL acknowledged that the divestment is a part of a worth unlocking technique and can allow the corporate to pursue development in its real estate enterprise.
R Ok Dalmia, Managing Director of ABREL, mentioned, “The divestment of the Pulp and Paper endeavor by ABREL is a strategic portfolio alternative and unlocks worth for the shareholders of ABREL. The corporate has launched into a transformational development section, and this transfer will additional sharpen its give attention to real estate to drive sustained worth creation.”
He added, “Over time, CPP has turn into synonymous with sturdy efficiency and excessive sustainability requirements. To take it to the subsequent stage in dimension and worth, the corporate is happy to have present in ITC, a reputable and well-established participant.”
JM Monetary Restricted served because the unique monetary advisor whereas AZB & Companions offered authorized counsel to ABREL on the transaction.
For ITC, a market chief with over 1 million tonnes every year of paper manufacturing capability throughout 4 states, the acquisition marks a strategic enlargement. It had been vying with West Coast Paper Mills to purchase Century Pulp and Paper.
For the Aditya Birla Group, the sale aligns with its broader technique of reallocating capital. The conglomerate has lately expanded into high-capex sectors like paints, jewelry retailing, and real estate — necessitating sharper monetary maneuvering to maintain its diversified pursuits in metals, cement, retail, telecom and monetary companies.
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