India Cements To Remain Listed Entity Post Acquisition, Says UltraTech

The open offer is priced at Rs 390 per share, aggregating to a total consideration of up to Rs 3,142.35 crore.

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UltraTech Cement Ltd. has announced no plans to delist India Cements Ltd. after acquisition, according to a regulatory filing by the company.

The ownership of the Chennai Super Kings, a cricket team that plays in the Indian Premier League, currently held by the promoters of India Cements, including N Srinivasan and his family, will remain the same.

Axis Capital, which is managing the open offer for UltraTech, announced on Monday that the leading cement company intends to acquire 8.05 crore shares of ICL. This acquisition will represent 26% of the total shareholding in the Chennai-based cement manufacturer, according to an exchange filing.

"The acquirer does not have an intention to delist the target company (ICL) pursuant to this open offer," it said.

The open offer is priced at Rs 390 per share, aggregating to a total consideration of up to Rs 3,142.35 crore, which will be subject to the receipt of the required statutory approval from fair trade regulator CCI.

The offer price is 3.53% higher, as the shares of ICL were trading at Rs 376.70 apiece on the BSE, up 0.56% from the previous close.

On Sunday, the Aditya Birla Group flagship company announced to acquire a 32.72% stake in India Cements from promoters and their associates for Rs 3,954 crore, which will allow it to expand its footprint in the highly competitive and fast-growing Southern cement market, particularly Tamil Nadu.

"Further, pursuant to the consummation of the underlying transaction, the sellers forming part of promoter and promoter group of the target (ICL) intend to be reclassified as public shareholders in accordance with the procedures contained in the SEBI (LODR), Listing Obligations and Disclosure Requirements, Regulations," said.

Chennai Super Kings Cricket Ltd. also intends to be reclassified as public shareholders, according to the document.

The proposed shareholding of UltraTech after the acquisition of a 32.72% stake in India Cements from promoters and their associates, will be 55.49%.

In case of full acceptance of the initial public offer, UltraTech's proposed shareholding in ICL would constitute up to 81.49% of the equity share capital of the company.

A detailed public statement would be published on or before Aug. 2, 2024, that is, within five working days of this public announcement, in accordance with the SEBI (SAST), Substantial Acquisition of Shares and Takeovers, Regulations, it said.

"The DPS shall contain details of the open offer, including information on the offer price, the acquirer, the target company, the background to the offer, the statutory approvals required for the open offer, relevant conditions (including conditions precedent) as specified under the SPAs (share purchase agreements) and details of financial arrangements and other terms of the open offer," it said.

(With inputs from PTI).

Also Read: UltraTech Cement Pays High Premium Of $120 A Tonne In India Cements Stake Purchase

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