Aditya BIRLA discharge the Uttarakhand papers unit to ITC for 3,498 rupees in the strategic shift to real estate

There is a running strategic transformation in Aditya Birla Real Estate Ltd (ABREL). The Board of Directors approved a deal worth 3498 rupees to strip the Lalkuan paper unit, Outcantic, to ITC LIMITED – which represents a decisive axis to its primary focus: real estate. The sale comes at a time when the group moves to cancel value lock and sharpen its business priorities amid an aggressive campaign of expansion.

The agreement between ABREL and ITC includes considering a lump sum of 3498 rupees, taking into account some amendments, and joints of organizational approvals, including those from the Competition Committee in India and ABREL shareholders.

In a press release issued on March 31, ABRL stated that the process of getting rid of the value of opening a value and will enable the company to follow up on its real estate business.

“The stripping of the pulp and paper that ABRE pledges is to choose a strategic portfolio and performs the value of opening the value of the shareholders in ABREL. The company has started a transformational growth phase, and this step will increase its focus on real estate to pay a sustainable value,” said RK Dalmia, the administrative director of ABREL.

He added: “Over the years, CPP has become a synonym for strong performance and high sustainability standards. To move it to the next level in size and value, the company is pleased to have found in ITC, a reliable and firm player.”

JM Financial Limited worked as an exclusive financial advisor while AZB & Partners presented a legal advisor to ABREL in the deal.

For ITC, a market leader with more than a million tons annually of paper production capacity in four states, the acquisition is a strategic expansion. He was competing with the western coast paper mills to gain pulp and paper.

For Aditya Birla, the sale is compatible with its wider strategy of re -customizing the capital. The group recently expanded in high-carbon sectors such as Paints, Jewelery Retail, Real Estate-which requires a more clear financial maneuver to maintain its various interests in minerals, cement, retail, communications and financial services.