UltraTech Board of Directors Approves Purchase of 32.72 percent Equity in The India Cements
#UltraTechCement #Acquisition #UCC #UltraTechAcquiresIndiaCements #IndiaCements“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.” - Kumar Mangalam Birla, Chairman, Aditya Birla Group
July 2024 : At its meeting held on July 28, the Board of Directors of UltraTech approved the purchase of 32.72 percent equity stake of the promoters and their associates in The India Cements Limited.
UltraTech had made a financial investment in The India Cements to acquire 22.77 percent equity at a price of INR ₹ 268 per share in June 2024. Post this financial investment, the promoter group approached UltraTech to sell their holding in the company.
India Cements has a total capacity of 14.45 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.
Post signing of the SPA and obtaining regulatory approvals, UltraTech will pay INR ₹ 3,954 crores at INR ₹ 390 per share for buying 32.72 percent stake in The India Cements from the promoters and their associates. This will trigger a mandatory open offer, at INR ₹ 390 per share. The open offer will be done subsequently after obtaining all regulatory approvals.
Kumar Mangalam Birla, Chairman, 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. Every investment in a core sector like cement accelerates economic activity and drives progress. These investments have also facilitated India’s nationwide infrastructure upgrade, powering our country’s growing need for housing, roads, and other vital infrastructure. This, in turn, has had a tremendous impact on the lives and aspirations of people.” He added, “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.”
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