Jaiprakash to merge hotel, cement units
The board of Jaiprakash Associates has approved the acquisition of Jaypee Hotels, Jaypee Cement and Gujarat Anjan Cement. The mergers will be effective retrospectively from April 1, 2008.
The group operates a 9-million-tonne cement capacity in central India. Jaiprakash Associates held 72.18% in the Jaypee Hotels unit as on September 30. Details of shareholdings in the other firms were not immediately available.
Ahead of the announcement, Jaypee Hotels shares ended 4.56% up at Rs84.85. Shares in Jaiprakash Associates, which has a market cap of $2.3 billion, closed down 2% at Rs87.40.