Shares of Aditya Birla Real Estate Ltd gained 1.59% to Rs 1,991 on Monday after the company announced the sale of its pulp and paper business to ITC Ltd for a consideration of Rs 3,498 crore. The business transfer agreement, which involves the Lalkuan-based pulp and paper division in Uttarakhand, marks a strategic exit from non-core operations to focus exclusively on the real estate segment.
The board of Aditya Birla Real Estate approved the transaction as a value-unlocking initiative. Managing Director R.K. Dalmia stated that the divestment will help sharpen the company’s focus on its core business and support long-term value creation. The transaction, however, is subject to regulatory approvals including those from the Competition Commission of India (CCI) and the company’s shareholders.
The paper business, known for sustainability and performance, will now be taken over by ITC Ltd, which was in competition with West Coast Paper Mills for the acquisition. JM Financial acted as the financial advisor while AZB & Partners were the legal advisors for the deal.
The move is also expected to free up capital for the Aditya Birla Group, which has been aggressively expanding into sectors like paints, jewellery, and real estate.
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