UltraTech Cement Middle East Investments Limited (UCMEIL) has announced its intention to acquire a 31.6% stake in United Arab Emirates (UAE)-based Ras al Khaimah Co for White Cement and Construction Materials PSC (RAKWCT).
UCMEIL is a wholly owned subsidiary of UltraTech Cement, which is part of the Aditya Birla Group.
UltraTech Cement is a manufacturer of grey cement, ready-mix concrete (RMC) and white cement across India.
On 15 April 2022, UltraTech Cement disclosed that UCMEIL would invest 29.39% in the equity share capital of RAKWCT.
The latest deal is said to be in line with Article 10 of the Securities and Commodities Authority's board of directors decision on the acquisition code for public shareholding companies in the UAE.
The formal offer period for this acquisition commenced today (28 May) and will remain open until 24 June.
UltraTech Cement, in a stock exchange filing, said: “We now write to inform you that UCMEIL has notified its intention of making a partial conditional cash offer for acquiring 158,049,610 shares, representing 31.6% of the issued and paid-up share capital of RAKWCT in accordance with Article 10 of the decision of the chairman of the Securities and Commodities Authority’s board of directors No. (18/RM) of 2017, concerning the Rules of Acquisition and Merger of Public Shareholding Companies (the 'Takeover Code') of UAE, (the 'Offer').”
UCMEIL aims to leverage its expertise in white cement manufacturing to enhance RAKWCT's business operations both locally and internationally.
The expansion plans include the introduction of modern products such as wall care putty and other offerings.
