Aditya Birla group’s UltraTech has bought 98 per cent stake in Binani Cement from its promoter, BSE-listed Binani Industries, subject to the clearance from the National Corporate Law Tribunal and other regulatory authorities. UltraTech said it will pay Rs 72.66 billion to the lenders of Binani Cement.
UltraTech had offered this amount to the resolution professional during the insolvency process but its bid was rejected by the resolution professional, who, according to both Binani Industries and Ultratech, had run an extremely non-transparent process. According to the RP, the highest bidder was Dalmia Cement and the lenders had also agreed to the recommendation. But a final decision will be taken by the NCLT Kolkata which adjourned the case today.
In its March 13 hearing, the NCLT had asked Vijaykumar Iyer, resolution professional of Binani Cement, to appear in person in the Tribunal to answer questions on the bidding process followed in the cement company’s debt resolution.
This was after a petition filed by the Aditya Birla group’s UltraTech against the resolution professional and Deloitte for rejecting its bid for Binani Cement. In its petition, UltraTech had alleged the RP did not follow a transparent method in the bidding process and did not give it any details on what grounds its bid was not allowed.
Last week, Ultratech increased its bid by Rs 7 billion to Rs 69 billion but there was no response from the resolution professional. UltraTech offered to pay 100 per cent of secured lenders and unsecured lenders' debt.
“The NCLT hauled up the RP for not being transparent and not following the process. The tribunal asked the RP to appear in person,” said a source close to the development.
Interestingly, the promoter of Binani Cement, Binani Industries has already challenged the RP in the same sribunal saying the RP has “personal interest” in undervaluing Binani Cement and then selling it to a preferred bidder. As per Binani Industries, the value of Binani Cement is Rs 173 billion.
A Deloitte spokesperson had earlier declined to comment on the issue citing client confidentiality. A Dalmia Bharat spokesperson said at present the company is not commenting on Binani Cement acquisition.
UltraTech had offered this amount to the resolution professional during the insolvency process but its bid was rejected by the resolution professional, who, according to both Binani Industries and Ultratech, had run an extremely non-transparent process. According to the RP, the highest bidder was Dalmia Cement and the lenders had also agreed to the recommendation. But a final decision will be taken by the NCLT Kolkata which adjourned the case today.
In its March 13 hearing, the NCLT had asked Vijaykumar Iyer, resolution professional of Binani Cement, to appear in person in the Tribunal to answer questions on the bidding process followed in the cement company’s debt resolution.
This was after a petition filed by the Aditya Birla group’s UltraTech against the resolution professional and Deloitte for rejecting its bid for Binani Cement. In its petition, UltraTech had alleged the RP did not follow a transparent method in the bidding process and did not give it any details on what grounds its bid was not allowed.
Last week, Ultratech increased its bid by Rs 7 billion to Rs 69 billion but there was no response from the resolution professional. UltraTech offered to pay 100 per cent of secured lenders and unsecured lenders' debt.
“The NCLT hauled up the RP for not being transparent and not following the process. The tribunal asked the RP to appear in person,” said a source close to the development.
Interestingly, the promoter of Binani Cement, Binani Industries has already challenged the RP in the same sribunal saying the RP has “personal interest” in undervaluing Binani Cement and then selling it to a preferred bidder. As per Binani Industries, the value of Binani Cement is Rs 173 billion.
A Deloitte spokesperson had earlier declined to comment on the issue citing client confidentiality. A Dalmia Bharat spokesperson said at present the company is not commenting on Binani Cement acquisition.
No comments:
Post a Comment