The lenders of Binani Cement have issued letter of intent to UltraTech after approving its bid to acquire the company under the bankruptcy code, Aditya Birla group firm said today.
The Committee of Creditors (CoC) of Binani Cement on May 28 approved the resolution Plan submitted by UltraTech Cement, it said in a regulatory filing.
The company said that the CoC "has today issued a letter of intent to the Company for acquisition of Binani Cement".
According to sources, the CoC of Binani Cement had voted in favour of UltraTech Cement's Rs 7,960-crore offer.
The race to acquire Binani was bitterly contested between two resolution applicants - UltraTech and Dalmia Bharat group.
The CoC had earlier approved the bid of Dalmia Bharat Group.
However, the Kolkata Bench of the National Company Law Tribunal had turned it down asking to consider UltraTech offer, which was higher.
According to UltraTech, the "acquisition provides the company access to large reserves of high quality limestone."
It said: "The acquisition increases the Company's presence in the highly competitive and fast growing Northern and Western markets in the country."
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