UltraTech Cement offers to acquire 31.6 per cent in UAE-based RAKWCT

Industry:    7 months ago

Aditya Birla Group firm UltraTech Cement on Monday said it has made an offer to acquire a 31.6 per cent stake in UAE-based RAK Cement Co for White Cement and Construction Materials PSC (RAKWCT). This would be done by UltraTech Cement Middle East Investments Ltd (UCMEIL), a wholly-owned subsidiary of the Indian cement maker in the UAE.

On April 15, UltraTech had informed that UCMEIL will invest in 29.39 per cent equity share capital of ‘Ras al Khaimah Co. for White Cement and Construction Materials PSC’ (RAKWCT), a company listed on the Abu Dhabi stock exchange.

It had announced and investment of USD 101.10 million (around Rs 839.52 crore) for a 29.39 per cent equity that time.

“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 per cent of the issued and paid-up share capital of RAKWCT,” it said.

This will be in accordance with Article 10 of the decision of the chairman of the Securities and Commodities Authority’s Board of Directors, concerning the rules of acquisition and merger of public shareholding companies (the ‘takeover code’) of UAE, it added.

“The offer period shall open from 28th May 2024 and remain open up to 24th June 2024,” it said.

RAKWCT was incorporated in September 1980 and had a turnover of Rs 482.5 crore in CY21, it added.

UltraTech has a consolidated capacity of 138.39 Million Tonnes Per Annum (MTPA) of grey cement. It has 23 integrated manufacturing units, 29 grinding units, one clinkerisation unit and 8 bulk packaging terminals.

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