ABREL Sells Pulp & Paper Biz to ITC for Rs 3,498 Cr

New Delhi, Mar 31 (PTI) Aditya Birla Real Estate Ltd (ABREL) on Monday announced the sale of its pulp and paper business to ITC for Rs 3,498 crore as part of its strategy to focus on property business.

In a regulatory filing, ABREL informed that its board approved the execution of the business transfer agreement for the divestment of pulp and paper undertaking situated in Lalkuan, Uttarakhand, by way of a slump sale to ITC Limited.

"The transfer of the business will be for a lump-sum cash consideration of Rs 3,498 crore, to be paid by ITC to ABREL," the real estate firm said.

The divestment of the pulp and paper undertaking is a value-unlocking exercise.

"It will further enable the company to pursue growth opportunities in its core business - real estate," the statement said.

Aditya Birla Real Estate Managing Director R K Dalmia 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," he added.

"Over the years, Century Pulp and Paper 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," Dalmia said.