The Aditya Birla Real Estate Limited board on Monday approved the execution of the business transfer agreement for divestment of the company’s Pulp and Paper undertaking situated in Lalkuan, Uttarakhand, to ITC Limited.

The deal is worth Rs 3,498 crore, which will be paid by ITC to ABREL. The divestment of the Pulp and Paper undertaking is a value unlocking exercise for ABREL. It will enable the company to pursue growth opportunities in its core business—real estate, the company said in a press release.

R. K. Dalmia, Managing Director, Aditya Birla Real Estate Ltd, 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.”

The lump sum consideration is subject to certain adjustments as per the agreement. The transaction is contingent on necessary statutory and regulatory approvals including approvals from the Competition Commission of India (CCI) and shareholders.

“Over the years, CPP 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,” added Dalmia

JM Financial Limited acted as the exclusive financial advisor and AZB & Partners acted as the legal advisor to Aditya Birla Real Estate Limited (“ABREL”) for this transaction.