A strategic change in Aditya Birla Real Estate Ltd (Abrel) is underway. The board approved a 3,498 Rs crown agreement to divert its pulp and paper unit to Likan, Utarahand, ITC limited – denoting the decisive pillar back to its basic focus: real estate. Sales come when the conglomerate moves towards unlocking value and tightening its business priorities amid aggressive expansion drive.
The agreement between Abrel and ITC includes a lump sum for reviewing 3,498 RS crowns, which is subject to certain adjustments and dependent on regulatory approvals, including those from the India Competition Commission and shareholders of Abrell.
In a press release issued on March 31, Abrel said redirecting was part of a value unlock strategy and would allow the company to grow real estate business.
RK Dalmia, CEO of Abrel, said: “The diverting of the pulp and the paper taken by Abrel is a strategic choice for a portfolio and unlocked the value for Abrel shareholders. The company has begun a transformation phase of growth, and this move will further tighten its focus on real estate.”
He added: “Over the years, the CP 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 find it in ITC, a credible and well -established player.”
JM Financial Limited served as an exclusive financial adviser, while AZB and Partners secured Abrel’s legal adviser to the transaction.
For ITC, the market leader with over 1 million tonnes annually of the capacity to produce paper in four countries, the acquisition denotes strategic expansion. He struggled with West Bank paper mills to acquire a centuries -old pulp and paper.
For the Adita Berla group, sales are aligned with its broader strategy for capital redistribution. The conglomerate has recently expanded to high-capital sectors such as colors, jewelry retail and real estate-in the need sharper financial maneuvers to maintain their variety of interests in metals, cement, small, telecom and financial services.
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