GACL not to take over DLF

MUMBAI, May 19: Gujarat Ambuja Cement Ltd GACL has turned down a proposal by DLF Cement to buy out the ailing 1.4 million tonnes per annum cement company and said the takeover would not be financially viable.

Stating that a possible buyout of DLF Cement did not make minimum financial sense, a GACL official said: quot;DLF Cement has debt outstandings of over Rs 380 crore, and if I am to add a price of Rs 185 crore, which is what was reported as proposed, the total takeover liability would be in the region of Rs 560 crore for a 1.4 million tonne cement facility. This definitely does not make financial sense.quot;

It is understood that Gujarat Ambuja8217;s refusal to take over DLF Cement stems from the fact that DLF is all set to end the year with a loss in the region of Rs 50 crore. quot;Taking into account the share capital of the company which stands at Rs 128 crore, the company8217;s net worth may even turn negative over the next two years. With BIFR prospects looming large, a takeover by Gujarat Ambuja seems quiteunlikely at this stage,quot; said a cement analyst.