Aditya Birla Group’s company UltraTech has planned to buy cement business from the company Century Textile and Industries of B. K. Birla Group. The deal will be through stock(share) swap deal. After this deal, Ultratech’s cement business is likely to get stronger in the domestic market.
India’s largest exporter of cement UltraTech Cement Limited board of directors approved a scheme of arrangement amongst century textiles and industries and its respective shareholders and creditors, the Aditya Birla Group firm said.
Century’s cement business is being acquired at an enterprise value of ₹8,621 crore, including debt of ₹3,000 crore which will be taken over by UltraTech.
According to the scheme, the shareholders of Century would get one equity share of UltraTech, having a face Rs 10/- each for every eight equity shares of Century of face value Rs 10 each.
“We were looking for growth opportunities and this deal will give us leadership access throughout the country,” said K.K. Maheshwari, managing director, UltraTech.
UltraTech Cement said, ”The acquisition may lead to greater shareholder value creation, it added.”
“The transaction is subject to the approval of shareholders and creditors, stock exchanges, NCLT, CCI and all other regulatory approvals as may be required,” the company said.
Earlier in June last year, Ultratech Cement completed the acquisition of six integrated cement units and five grinding units of Jaiprakash Associates. The deal was in the Rs 16,189 crore. Apart from this, the company is also in the race for assets of insolvent Binani Cement Ltd.