UltraTech Cement announced on Sunday that it will acquire a 32.72 per cent share in India Cements in a deal worth Rs 3,954 crore. The Aditya Birla Group flagship firm said that it will purchase the firm from its promoters and their associates. The deal is expected to help UltraTech expand its presence in the increasingly competitive and rapidly-growing Southern cement market in the country, especially in Tamil Nadu.
After inking the share purchase agreements and receiving the regulatory nod, UltraTech will pay to seal a 32.72 per cent share in India Cements. Promoters Srinivasan N, Chitra Srinivasan, Rupa Gurunath, and S K Asokh Baalaje are offloading their stake of 28.42 per cent in India Cements, while Sri Saradha Logisitics is selling its share of 4.30 per cent in the company, reported PTI.
Additionally, UltraTech also announced an open offer worth Rs 3,142.35 crore to buy another 26 per cent stake in India Cements from its shareholders. Once the deal goes through, UltraTech’s stake in India Cements will rise to more than 55 per cent. SEBI regulations make it mandatory for the company to go for an open offer after the deal.
This decision follows a month after Adani Group informed that is acquiring Penna Cement, based out of Hyderabad, for Rs 10,422 crore this month.
“The proposed transaction is, therefore, an endeavour to extend the company’s footprint and presence in the highly fragmented, competitive and fast-growing Southern market in the country, particularly Tamil Nadu, where it has limited presence,” UltraTech noted.
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The expected timeline for the deal is set to be within six months, subject to regulatory approvals, the company informed.
Elaborating on the deal, 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.”
