By KVVV Charya
Aspiring to become the largest cement producer in the country, Aditya Birla Group’s flagship company, UltraTech targets to acquire India Cement. It will acquire 32.72 per cent stake owned by the promoters and their associates for an amount of Rs 3,954 crore, which enable the company to expand its market reach in booming southern markets.
The company has made the announcement of acquisition of India Cement, immediately after Adani group, the second largest producers of cement had acquired Hyderabad based Penna Cements.
With the latest stock buy, the UltraTech’s stake in India Cement raises to 55 per cent thus the company has to make open offer as per the SEBI takeover guidelines. It acquires shares from its promotes and associates at Rs 390 per share.
Accordingly, the company had made announcement to acquire another 26 per cent from its shareholders amounting to Rs 3,142.35 crore. The company targets to reach 200 MTPA company thus making it as one of the largest cement producer in the world.
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