ITC Limited has announced the acquisition of Century Pulp & Paper for a consideration of INR 3,498 crores on a cash-free debt-free basis, payable on closing. The facility in North India complements existing facilities of ITC in South India.
Apr 01, 2025
ITC Limited has entered into a Business Transfer Agreement (‘BTA’) with Aditya Birla Real Estate Limited for the acquisition of the companies’ pulp and paper business operated under the name of ‘Century Pulp and Paper’, along with the assets, liabilities, contracts, employees etc. as a going concern on a slump sale basis, as per the terms and conditions laid down in the BTA. According to the exchange filing, the acquisition aligns with the company’s strategy to drive the next phase of growth in its Paperboards and specialty papers business by expanding capacity at a new location, given the limited scope for expansion at the existing facilities.
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Lumpsum consideration of up to INR 3,500 crores on a cash-free debt-free basis, payable on Closing, subject to adjustments in accordance with the terms and conditions set out in the BTA, the company said in the exchange filing.
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The completion of the acquisition is subject to approval from (i) the Competition Commission of India; (ii) Ministry of Environment, Forest and Climate Change, Government of India; and (iii) any other authority as may be necessary. The transaction is expected to be consummated in about 6 months, subject to receipt of statutory approvals and fulfilment of the conditions laid down in the BTA.
