Shares of Ultratech Cement Limited rose by 1.3% after it announced its plans to acquire 31.6% stake in UAE-based RAK Cement, as per its recent regulatory filing.

UltraTech Cement Middle East Investments Limited (UCMEIL), a subsidiary of the Company –  UltraTech Cement Limited in the UAE, plans to acquire 29.39% equity share capital of ‘Ras al Khaimah Co. for White Cement and Construction Materials PSC’ (RAKWCT), a company listed on the Abu Dhabi stock exchange.

UCMEIL intends to make a partial conditional cash offer to acquire 31.6% of the issued and paid-up share capital of RAKWCT. The offer period will run from May 28, 2024, to June 24, 2024.

RAKWCT is based in Ras Al Khaimah and is listed on the Abu Dhabi Stock Exchange. It was incorporated on September 10, 1980. The turnover in the last three years was as follows: CY23: 576.3 crores, CY22: 537.4 crores, CY21: 482.5 crores. The company is located in the United Arab Emirates.

The offer price will not be lower than the highest price of the following:

a) market price on the first day of the offer,

b) closing price before the first day of the offer commencement,

c) average price during 3 months preceding the start of the offer, or

d) the highest price paid by the acquiring party to buy the shares during the 12 months preceding the submission of the offer.

UCMEIL plans to acquire 31.6% of the ordinary shares of the issued and paid share capital of RAKWCT. The acquisition is expected to be completed within 90 days from the date of the offer.

Ultratech aims to use its expertise in producing white cement to help RAK Cement grow its business locally, regionally, and globally through the acquisition.

Currently, UltraTech has a total capacity of 138.39 million metric tonnes per annum (MTPA) of grey cement. It operates in 23 integrated manufacturing units, 29 grinding units, one clinkerisation unit, and 8 bulk packaging terminals.

However, at 12:03 pm, the shares of Ultratech cement were trading flat on NSE.