Ultratech To Acquire India Cements’ Unit In A 315 Cr Deal
By: Geetanjali
Aditya Birla Group’s subsidiary Ultratech Cements is all set to acquire India Cements cement grinding unit in a Rs.315 Cr deal with an add on investment of Rs. 504 Cr with further plans to expand the number of units.
Announcing the acquisition of India Cements, the board of directors of Utlratech said in its stock filing “of a grinding unit having installed capacity of 1.1 million tonnes per annum in addition to a captive railway siding at Parli, Maharashtra from The India Cements Limited for a consideration of Rs 315 crores”.
Mumbai based Ultratech Cement is India’s largest and the world’s third largest (excluding China) cement producer with a capacity to produce 146.2 million tonnes per annum (MTPA).
With the acquisition of India Cements Limited grinding unit at Parli, Maharashtra which has an installed capacity of 1.1 MTPA.
In a separate filing the company gave a head nod to two more projects, including capacity expansion of 1.2 MTPA at Parli in Maharashtra with an investment of 166.4 Cr post acquisition, and 1.8 MTPA at Dhule, Maharashtra at a cost of Rs. 338 Cr.
Taking the overall capacity of Ultratech to 13 MTPA in the southern regions and 1.8 MTPA in Rajasthan.
Company said it has entered into an Asset Purchase Agreement with the seller. “This purchase will help the Company to strengthen its presence in the rapidly growing Maharashtra markets.”
Making a similar regulatory filing, The India Cements said out of the total consideration of Rs 315 crore (exclusive of taxes and levies), “Rs 307 crore will be received by the company shortly and the balance Rs 8 crore within nine months from the date of the agreement.”
Following the announcement of acquisition, the share price of Aditya Birla Group owned Ultratech cement has risen by 2%.
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