UltraTech Cement Ltd’s board has approved a series of transactions to acquire 32.72 per cent stake in India Cements Ltd.
Initially, in June, UltraTech purchased a 22.77 per cent stake in India Cements at Rs 268 per share.
In the latest move, UltraTech will acquire an additional 32.72 per cent stake from the promoters and their associates at Rs 390 per share, amounting to Rs 3,954 crore.
This will bring UltraTech’s total ownership in India Cements to 55.49 per cent, triggering a mandatory open offer under Sebi regulations.
As part of the compliance, UltraTech has announced an open offer to purchase up to 8.05 crore shares, or 26 per cent of the equity, from public shareholders at Rs 390 per share, totalling approximately Rs 3,142.39 crore.
This offer price is 4 per cent higher than the closing price of India Cements on the previous Friday.
Additionally, UltraTech Cement has entered into a share purchase agreement (SPA 2) to buy 1.99 crore equity shares (6.44 per cent of the equity share capital) from Rupa Gurunath, Trustee of Security Services Trust, and Rupa Gurunath, Trustee of Financial Service Trust, both part of the promoter group, for Rs 778.21 crore.
In addition, UltraTech will acquire 1,33,16,783 equity shares (4.30 per cent of the equity share capital) from Sri Saradha Logistics Private Limited for Rs 519.35 crore.
These transactions, collectively termed as the “Primary Acquisition,” are subject to statutory and regulatory approvals.