ITC leads race to acquire Century Pulp and Paper for INR 3,000-3,500 crore; West Coast Paper Mills in close pursuit

ITC leads race to acquire Century Pulp and Paper for INR 3,000-3,500 crore; West Coast Paper Mills in close pursuit

ITC appears to be leading the race to acquire Century Pulp and Paper from the Aditya Birla Group, with an offer between INR 3,000-3,500 crore. West Coast Paper Mills is also in contention, with a decision expected soon. The Aditya Birla Group aims to generate capital for its diversified business interests.

BUYOUT TALKS FOR ADITYA BIRLA GROUP FIRM AT ADVANCED STAGE

New Delhi: ITC has emerged as the frontrunner to acquire Century Pulp and Paper (CPP) from the Aditya Birla Group in a close contest with rival paper manufacturers, according to people aware of the matter.

The cigarettes-to-soaps conglomerate is said to have offered Rs 3,000-3,500 crore for CPP. The offer is closely trailed by Bangur family- promoted West Coast Paper Mills, which is also in the fray, according to the sources.

The talks were said to be at an advanced stage by the people cited and a decision is likely to be taken soon. It could still be a toss up between the two contenders, they said.

Discussions for the purchase of CPP picked up steam in December and have moved at a rapid pace, as per those in the know.

The Aditya Birla Group had previously attempted to divest the pulp and paper business in 2017 but did not follow through with the plan.

The sale of CPP is likely to free up capital for the diversified business group, one of the largest in the country, which has interests in multiple areas such as metals, cement, financial services, retail and tele- com. It has also ventured into new areas like paints, jewellery retailing and real estate, incurring sigficat Capex.

CPP has an annual paper production capacity of 480,000 tonnes at its Nainital plant. Operating profits are in the range of Rs 600-700 crore. It produces products in categories such as writing and printing paper, copier paper, tissue paper and paper board. Applications for paper board, a type of hardened or fortified paper, are in the consumer, pharmaceuticals and cosmetics industries where it is used as packaging material. The cigarette industry is also a major consumer of paper board.

An Aditya Birla Group spokesperson was unavailable for comment. ITC said it would not comment on "market speculation". West Coast Paper Mills didn't respond to queries.

JK Paper helmed by Harsh Pati Singhania was also in the fray but its offer is not currently in the reckoning, according to the sources. JK Paper didn't respond to queries."

The above story has been published by https://economictimes.indiatimes.com/ Writer: Mr. Mohit Bhalla
 

Web Title: ITC leads race to acquire Century Pulp and Paper for INR 3,000-3,500 crore; West Coast Paper Mills in close pursuit