Dalmia Cement hits out at UltraTech over 'misleading' claims on Binani bid

Dalmia Cement today hit out at UltraTech's claim that it was 'wrongly and unjustifiably' rated second preferred bidder for Binani Cement on the basis of apprehensions of obtaining CCI clearance.

Stating that evaluation criteria was made known to all before the bids, Dalmia Cement Bharat Group CEO Mahendra Singhi said no evidence has been cited to show that the CoC (Committee of Creditors) and its advisors did not make a correct assessment of bids.

UltraTech today received CCI nod for its Rs 7,266 crore bid for Binani Cement.

"The CCI clearance validates UltraTech's contention that they were wrongly and unjustifiably rated H2 instead of H1," the Aditya Birla group firm said in a regulatory filing.

Reacting to the statement, Singhi said: "The reasons cited by the unsuccessful bidder for its failed bid, in stock exchange filings and press interviews, are misleading. Dalmia Bharat made the highest financial bid and had also obtained the highest score in the evaluation.

Earlier this month, Dalmia Cement had said its Rs 6,350 crore bid to buy Binani Cements Ltd (BCL) was accepted by the lenders. It had also offered 20 per cent equity in Binani to the lenders.

He further said that the only criterion involving regulatory orders was whether any adverse order including from CCI imposing penalties had been passed against the bidder over the last 5 years.

"No evidence has been cited to show that the CoC and its advisors did not make a correct assessment of bids," Singhi claimed.

Refuting Ultratech's claim that it was 'wrongly and unjustifiably' rated H2 instead of H1, he said the evaluation criteria for the bids was fair and made known to all the bidders before the bids.

"We state emphatically that the likelihood of obtaining the CCI approval by a bidder was not at all a criterion in bid evaluation," Singhi said, adding that CCI approval was contemplated to be a post NCLT approval step.