Shiva Cement Ltd. (SCL) recently informed exchanges that the company has amended its Memorandum of Understanding with Bhushan Power & Steel Ltd. SCL will now advance ₹50 crore to BPSL (up from ₹20 crore) within 90 days of October 4, 2024. This is a related party transaction that was conducted at arm’s length and will be adjusted against future payments under a definitive agreement.
The amended MoU aligns with SCL’s long-term objectives and pertains to the establishment of a 1 MTPA cement grinding unit by BPSL for SCL. BPSL, a related party to SCL, is influenced by the promoter group of SCL. The transaction will be conducted at arm’s length, ensuring transparency.
Key details of the amendment:
- SCL will advance ₹50 crore to BPSL within 90 days from October 4, 2024.
- The total advance will be adjusted against future payments in the definitive agreement.
- If the definitive agreement is not executed within 120 days (instead of the previously stated 30 days), the parties will mutually decide on the next steps.
- All other terms of the original MoU remain unchanged.
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Shiva Cement