UltraTech Cement to Acquire 31.6% Stake in UAE’s RAKWCT: A Major Move by Aditya Birla Group
New Delhi: UltraTech Cement, part of the Aditya Birla group, announced on Monday that it plans to acquire a 31.6% stake in UAE-based RAK Cement Co for White Cement and Construction Materials PSC (RAKWCT). This acquisition will be made through UltraTech Cement Middle East Investments Ltd (UCMEIL), a wholly-owned subsidiary of UltraTech in the UAE.
On April 15, UltraTech had stated that UCMEIL would invest in a 29.39% equity share of RAKWCT, a company listed on the Abu Dhabi stock exchange. At that time, the investment was valued at USD 101.10 million (around Rs 839.52 crore).
UltraTech has now informed that UCMEIL intends to make a partial conditional cash offer to acquire 158,049,610 shares, representing 31.6% of RAKWCT’s issued and paid-up share capital. This acquisition will follow Article 10 of the UAE’s takeover code, which governs the rules for acquiring and merging public shareholding companies.
The offer period will run from May 28, 2024, to June 24, 2024. RAKWCT, established in September 1980, had a turnover of Rs 482.5 crore in the calendar year 2021.
UltraTech Cement has a consolidated capacity of 138.39 million tonnes per annum (MTPA) of grey cement. The company operates 23 integrated manufacturing units, 29 grinding units, one clinkerisation unit, and 8 bulk packaging terminals.
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