UltraTech Cement acquires majority stake in India Cements
UltraTech Cement board on Sunday approved the purchase of 32.72 per cent equity stake of the promoters and their associates in India Cements.
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Ultra Tech had made a financial investment in India Cements to acquire 22. 77 per cent equity at a price of Rs 268 per share in June 2024.
ET earlier reported that UltraTech is expected to spend a total of about Rs 7,000 crore to buy Srinivasan’s stake in India Cements and fund the mandatory open offer.
«Post this 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 in a statement on exchanges.
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,» as per the company's statement.
«Post signing of SPA and obtaining regulatory approvals, UltraTech will pay Rs. 3,954 crores at Rs. 390/ share for buying 32.72 per cent stake in India Cements from the promoters & their associates. This will trigger a mandatory open offer, at Rs 390/ share. The Open Offer will be done subsequently after obtaining all regulatory approvals,» the company said.
«UltraTech Cement's investments over the years, both organic and inorganic, have been designed to
