Reliance Infrastructure (Reliance Infra) are in talks to sell the assets of its cement business for an enterprise value of about Rs 5,000 crore.
The Anil Ambani-owned company is in talks with cement manufacturers as well as private equity firms, which include Blackstone and Carlyle Group, and is expected to announce the deal by the end of the year, according to a Bloomberg report.
The sale is expected to bring Rs 2,600 crore to Reliance and the buyer would inherit a debt of over Rs 2,400 crore, said the report.
Also read: Reliance Communication in talks with Aircel to merge mobile businesses
The company has already shortlisted seven potential buyers and looks to complete the sale by December 31. The sale will include cement plants with an annual capacity of 5.6 million tonne.
Reliance Cement Company's assets, which is a subsidiary of Reliance Infra, has a total debt of Rs 25,770 crore on a consolidated basis.
Reliance Infra in November had said that it would be selling 49% stake in its power transmission business in Mumbai to Canada's Public Sector Pension Investment Board.
Also read: Reliance Communication signs Rs 30,000-crore deal for sale of mobile towers business to Tillman, TPG
Anil Dhirubhai Ambani Group (ADAG) has announced deals to sell assets across its companies to pay off the debt and expand into its latest business, defence manufacturing. This included the sale of the phone towers business of Reliance Communications and property in Mumbai this month.
The yield on Reliance Communications' 2020 dollar bonds slumped 62 basis points this quarter and its shares jumped 27%, said the report.
At 0928 hours, Reliance Infrastructure shares were trading up on BSE 1.70%, or Rs 7.80 at Rs 465.65 per piece.
