In Short:
UltraTech has acquired a 32.72% stake in India Cement Ltd. for Rs 3,954 crore, aiming to expand its presence in the competitive Southern cement market. Despite this, UltraTech has no plans to delist ICL. The Indian Premier League team Chennai Super Kings ownership will remain unaffected. UltraTech plans to acquire 26% of ICL’s shares through an open offer at Rs 390 per share.
UltraTech Cement to Acquire India Cement Ltd
Exciting news in the world of cement as UltraTech, a leading cement player, announced its plans to acquire India Cement Ltd (ICL) in a recent regulatory filing. But don’t worry, ICL will remain a listed entity as UltraTech has no intention to delist the South-based rival.
Ownership of Chennai Super Kings
For all you cricket fans out there, the ownership of IPL team Chennai Super Kings, controlled by India Cements promoters N Srinivasan and his family, will remain unchanged amidst this acquisition.
Details of the Open Offer
Axis Capital, managing the open offer for UltraTech, revealed that they intend to acquire 26% of ICL’s shareholding, which amounts to 8.05 crore shares at a price of Rs 390 per offer share. The total consideration for this acquisition is an impressive Rs 3,142.35 crore.
Expansion in Southern Cement Market
UltraTech’s move to acquire a 32.72% stake in India Cements for Rs 3,954 crore will allow them to expand their footprint in the highly competitive Southern cement market, especially in Tamil Nadu. The proposed shareholding of UltraTech after this acquisition will be 55.49%.
Reclassification of Promoters
After the consummation of the transaction, the sellers forming part of the promoter group of ICL will be reclassified as public shareholders, as per SEBI regulations. Chennai Super Kings Cricket Limited, also a part of the promoter group, will be reclassified as public shareholders.
Detailed Public Statement
A Detailed Public Statement will be published soon, containing all the necessary details of the open offer, including the offer price, background information, approvals required, and financial arrangements. So stay tuned for more updates!
