UltraTech Cement board approves acquisition of India Cements

The company has executed several share purchase agreements dated 28th July 2024, aiming to acquire up to 10.13 crore equity shares

UltraTech Cement Ltd's board has approved the purchase of a 32.72 percent stake in India Cements Ltd from its promoters and their associates, adding to its initial acquisition of a 22.77 percent stake in June at Rs 268 per share.
The latest transaction, totalling Rs 3,954 crore at Rs 390 per share, will increase UltraTech's ownership in India Cements to 55.49 percent, necessitating a mandatory open offer at the same per-share price.

Additionally, Ultratech Cement has announced an open offer to buy up to 8.05 crore shares, or 26% of the equity, from public shareholders at Rs 390 per share, totaling approximately Rs 3,142.39 crore. This offer complies with SEBI regulations.

UltraTech has announced an open offer for India Cements at a price 4% higher than the closing price on Friday. In June, UltraTech had acquired a 23% stake in India Cements through block deals at Rs 269 per share.

Additionally, Ultratech Cement has entered into a share purchase agreement, SPA 2, to acquire 1.99 crore equity shares, representing 6.44 percent  of the equity share capital, from Rupa Gurunath, Trustee of Security Services Trust, and Rupa Gurunath, Trustee of Financial Service Trust, both members of the promoter group. This acquisition is valued at Rs. 778.21 crore.

Ultratech Cement will acquire 1,33,16,783 equity shares, representing 4.30% of the equity share capital, from Sri Saradha Logistics Private Limited. This transaction is valued at Rs. 519.35 crore.

Collectively, these acquisitions are referred to as the "Primary Acquisition." The successful completion of these transactions is contingent upon receiving the necessary statutory and regulatory approvals.

N. Srinivasan, who will turn 80 in January, has been at the helm of India Cements since 1989, following the death of his father, T.S. Narayanaswami. His daughter, Rupa Gurunath, a whole-time director, and his wife, Chitra Srinivas, who serves as a board director, reportedly have no interest in running the business after Srinivasan steps down due to health issues.