UltraTech Cement to pick up Kesoram’s cement business for $645 million

1 Dec 2023 , 10:31 AM

UltraTech Cement of India said on Thursday that it will acquire Kesoram Industries’ cement business in an all-stock transaction worth Rs 5,379 crore ($645.41 million), expanding its capacity goals in a highly competitive market.

In exchange for one share for every 52 shares of Kesoram, UltraTech would receive ownership of two integrated cement facilities in the southern Indian states of Karnataka and Telangana.

The offer price is Rs 173.15 per share, a 33.75% premium to Kesoram’s last closing.

The transaction will allow UltraTech to expand its footprint in the country’s highly fragmented, competitive, and rapidly growing Western and Southern markets, UltraTech said in a statement.

The planned transaction will help UltraTech get closer to its stated target of 200 million tonnes per year (mtpa) cement capacity in India, according to the company.

At around 10.26 AM, UltraTech Cement was trading 0.15% lower at Rs 8,989.95 per piece, against the previous close of Rs 9,003.65 on NSE. The counter touched an intraday high and low of Rs 9,163.40 and Rs 8,972, respectively.

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