Aditya Birla Real Estate (ABREL), formerly known as Century Textiles and Industries, has sold Century Pulp and Paper (CPP), located in Lalkuan, Uttarakhand, to ITC for Rs 3,498 crore through a lump-sum sale.
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JM Financial Limited acted as the exclusive financial advisor, while AZB & Partners served as the legal advisor to ABREL for this transaction.
The divestment of the Pulp and Paper business is a value-unlocking exercise for ABREL. It will also enable the company to pursue growth opportunities in its core business — real estate, ABREL said in a statement. The acquisition is expected to help ITC to expand its paperboards and specialty papers business where it has a strong presence in the country, the company said in a statement.
According to RK Dalmia, managing director, ABREL, 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.”
Over the years, CPP 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, Dalmiya added.
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Operating since 1984, Century Pulp and Paper is the largest manufacturer of paper, board, tissue, and pulp from a single location in the country, according to ABREL’s website.
Moreover, ABREL completed two commercial projects and launched five residential projects, establishing its presence in major cities such as the Mumbai Metropolitan Area (MMR), the National Capital Region (NCR) and Bengaluru.
The company’s arm Birla Estates recently announced a record sale of nearly Rs 3,000 crore with Birla Arika, a luxury project in Gurugram. Birla Estates recently launched a residential unit, Birla Punya, in Pune, with a revenue potential of nearly Rs 2,700 crore.
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