UltraTech Cement's board of directors has sanctioned the acquisition of a 32.72% equity share from promoters and their affiliates in India Cements.
Owned by the Aditya Birla Group, UltraTech Cement initially invested in India Cements by purchasing a 22.77% equity stake at Rs268 ($3.20) per share last month.
Following this investment, the promoter group expressed interest in divesting their shares, leading UltraTech to agree to purchase their stake.
After signing the share purchase agreement and receiving necessary regulatory consents, UltraTech will disburse Rs39.54bn at Rs390 per share to acquire the 32.72% stake in India Cements from the selling stakeholders.
This transaction will necessitate an obligatory open offer at Rs390 per share, which will be initiated after securing all regulatory clearances.
The completion of this transaction is contingent upon clearance from the Competition Commission of India.
Aditya Birla Group chair Kumar Mangalam Birla 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 tremendous impact on the lives and aspirations of people."
India Cements boasts a production capacity of 14.45 million tonnes per annum (mtpa) of grey cement, with 12.95mtpa located in the southern region of the country, primarily Tamil Nadu, and the remaining 1.5mtpa situated in Rajasthan.
UltraTech Cement, meanwhile, is a recognised building solutions enterprise with a valuation of $8.4bn and ranks as the third-largest cement producer globally, excluding China.
Committed to the Global Cement and Concrete Association's Climate Ambition 2050, it has a total grey cement capacity of 154.86mtpa.
