Aditya Birla Real Estate Limited (ABREL), the realty arm of the Aditya Birla group, on Monday said it got board approval for selling its pulp and paper businesses to ITC for Rs 3,498 crore via a slump sale.  

According to the business transfer agreement, Century Pulp and Paper (CPP), situated in Lalkuan, Uttarakhand, will be divested and sold to ITC, as a value unlocking exercise for its shareholders. The move will enable ABREL to grow its core real estate business.  

“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,” said R K Dalmia, managing director, ABREL. 

“Over the years, CPP has become synonymous with strong performance and high sustainability standards. To take it to the next level, the company is pleased to have found in ITC a credible and well-established player,” he added. 

ITC, in its statement, said: “The acquisition is in line 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.”