The Competition Commission of India (CCI) on Friday (December 20) said it has approved Aditya Birla Group flagship company UltraTech Cement’s acquisition of India Cements Ltd (ICL).
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J. Sagar Associates, Advocates & Solicitors (JSA) acted as the sole advisor to UltraTech Cement Ltd in securing approval from the CCI.
Back in July this year, UltraTech Cement said it will acquire a 32.72% stake in India Cements from its promoters and their associates in a ₹3,954-crore deal to expand its footprint in the highly-competitive and fast-growing southern cement market, particularly Tamil Nadu.
Besides, Ultratech has also announced a ₹3,142.35-crore open offer to acquire another 26% share of India Cements from its shareholders.
With an installed capacity of 154.86 million tonnes per annum (MTPA) of grey cement, UltraTech Cement leads the Indian cement industry. It has an ambition to become one of the largest cement companies in the world and has set a target for 200 MTPA.
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The board of the Aditya Birla firm approved the acquisition of a 32.72% stake from promoters and their associates at ₹390 per share, according to a regulatory filing from UltraTech.
It has entered into share purchase agreements for a 28.42% stake from promoters – Srinivasan N, Chitra Srinivasan, Rupa Gurunath and SK Asokh Baalaje, and a 4.30% share from Sri Saradha Logistics.
After the completion of the ₹3,954-crore deal, UltraTech’s stake in India Cements will increase to over 55%, mandating it to go for the open offer as per SEBI regulations.
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The board of UltraTech has also approved an “open offer for up to 8.05 crore equity shares representing 26% of the equity share capital of Target, at a price of ₹390 per equity share from the public shareholders of Target,” it said.
The price offered by UltraTech is 4.1% higher than the ICL share closing price of ₹374.60 last Friday (December 13). If fully subscribed, the open offer would cost UltraTech ₹3,142.35. Shares of UltraTech Cement Ltd ended at ₹11,433.70, down by ₹241.15, or 2.07%, on the BSE.
(Edited by : Shoma Bhattacharjee)
First Published: Dec 20, 2024 6:22 PM IST
