Aditya Birla Real Estate Ltd sells Century Pulp and Paper business to ITC for ₹3498 crore
Aditya Birla Real Estate Ltd (ABREL) on March 31 announced the sale of its pulp and paper undertaking located in Lalkuan, Uttarakhand, to ITC Limited for ₹3,498 crore as part of its strategy to focus on property business.
In a regulatory filing, ABREL informed that its board approved the execution of the business transfer agreement for the divestment of pulp and paper undertaking situated in Lalkuan, Uttarakhand, by way of a slump sale to ITC Limited.
“The transfer of the business will be for a lump-sum cash consideration of ₹3,498 crore, to be paid by ITC to ABREL,” the real estate firm said in a regulatory filing.
The divestment of the pulp and paper undertaking is a value-unlocking exercise. “It will further enable the company to pursue growth opportunities in its core business – real estate,” the statement said.
Aditya Birla Real Estate Managing Director R K Dalmia said, “The divestment of the Pulp and Paper undertaking by ABREL is a strategic portfolio choice and unlocks value for the shareholders of ABREL”.
“The company has embarked on a transformational growth phase, and this move will further sharpen its focus on real estate to drive sustained value creation,” he added.
“Over the years, Century Pulp and Paper 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 have found in ITC, a credible and well-established player,” Dalmia said.
Aditya Birla Real Estate Limited (ABREL), part of Aditya Birla Group, (formerly Century Textiles and Industries Limited) develops premium residential housing in key markets. The company is developing land parcels both through outright purchases as well as asset light Joint Ventures apart from developing its own land parcels. In the long term, the company is focused on developing world class residential, commercial and mixed use properties and aims to be amongst the top real estate companies in India.
The ITC Group is one of India’s foremost diversified conglomerates with businesses in FMCG, hotels, paperboards and packaging, agri business and Information Technology.
