UltraTech to obtain 32.72% stake in India Cements, deal triggers open offer | Company News

In its Sunday statement, the Aditya Birla Group cement entity said that post signing of the share purchase agreements and obtaining regulatory approvals, UltraTech will pay Rs 3,954 crore at Rs 390 per share for buying the 32.72 per cent stake in India Cements from the promoters and their associates.

India’s largest cement company added that the share purchase will trigger a mandatory open offer at the same price of Rs 390 per share. “The open offer will be done subsequently after obtaining all regulatory approvals,” UltraTech said in its statement.

UltraTech had in June made a financial investment of Rs 1,889 crore for a 22.77 per cent equity at a price of Rs 268 per share. UltraTech picked this stake from the open market from billionaire investor Radhakishan Damani and his associated entities.

“Post this (June) financial investment, the promoter group approached us as they wanted to sell their holding in the company, and we found it appropriate to acquire their stake in the company,” UltraTech said on Sunday.

India Cements has a total capacity of 14.45 million tonnes per annum (MTPA) of grey cement. Of this, 12.95 MTPA is in the South (particularly Tamil Nadu) and 1.5 MTPA is in Rajasthan. The transaction is subject to regulatory approvals.

Kumar Mangalam Birla, chairman of the Aditya Birla Group, said, “UltraTech Cement’s investments over the years, both organic and inorganic, have been designed to propel India to become a building solutions champion globally.”

“The India Cements opportunity is an exciting one as it enables UltraTech to serve the southern markets more effectively and also accelerates our path to 200+ MTPA capacity,” he added.