UltraTech Cement reduces stake buy offer for RAK Cement to 25%

26 Jun 2024 , 12:52 PM

Almost a month after making an offer to acquire 31.6% of UAE-based RAKWCT, Aditya Birla group firm UltraTech Cement said on Tuesday that the offer has been reduced for 25% stake. UltraTech announced on May 27 that it has launched an offer to acquire 31.6 percent of UAE-based RAK Cement Co for White Cement and Construction Materials PSC (RAKWCT) and 15.80 Crore shares.

This offer was revised to 12.50 Crore shares of RAKWCT, representing 25% of RAKWCT’s share capital, UltraTech Cement stated in a regulatory filing on Tuesday.

UltraTech Cement Middle East Investments Ltd (UCMEIL), the Indian cement maker’s wholly-owned subsidiary in the UAE, made the offer, according to the statement.

“The offer period ran for 28 days from 28th May, 2024 to 24th June, 2024,” according to the statement.

On April 15, UltraTech announced that UCMEIL would invest in 29.39% of the equity share capital of ‘Ras al Khaimah Co. for White Cement and Construction Materials PSC’ (RAKWCT), an Abu Dhabi stock exchange-listed firm.

It announced an investment of USD 101.10 million (about ₹839.52 Crore) for a 29.39% stake at the time.

RAKWCT was founded in September 1980 and generated a revenue of ₹482.5 Crore in fiscal year 2021, the company said.

UltraTech has a consolidated grey cement production capability of 152.7 million tonnes per year.

UltraTech Cement Limited is Aditya Birla Group’s cement flagship company. UltraTech, a USD 8.4 billion building solutions company, is India’s largest manufacturer of grey cement, ready-mix concrete (RMC), and white cement. UltraTech is the world’s third largest cement business, excluding China, with a total production capacity of 152.7 million tonnes per year (MTPA) of grey cement.

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