Calculate your SIP ReturnsExplore

UltraTech’s Subsidiary Acquires Majority Stake in RAKWCT

16 July 20242 mins read by Angel One
UltraTech's subsidiary UCMEIL acquired a 54.39% stake in RAKWCT, making it a subsidiary. Baker McKenzie and Abu Dhabi Commercial Bank PJSC managed the transaction.
UltraTech’s Subsidiary Acquires Majority Stake in RAKWCT
ShareShare on 1Share on 2Share on 3Share on 4Share on 5

UltraTech Cement Limited announced in a stock exchange filing that its wholly-owned subsidiary, UltraTech Cement Middle East Investments Limited (UCMEIL), has acquired additional shares in ‘Ras Al Khaimah Co. for White Cement and Construction Materials PSC’ (RAKWCT). The company added that the process initially communicated in letters dated May 27, 2024, and June 25, 2024, involved a partial cash offer to acquire shares in RAKWCT.

The offer period spanned from May 28, 2024, to July 24, 2024. During this time, UCMEIL successfully acquired 125,039,250 shares, representing 25% of RAKWCT’s share capital. According to local regulations, the final allotment of these shares to UCMEIL was confirmed on July 10, 2024, following the conclusion of RAKWCT’s shareholders meeting held on July 9, 2024. This acquisition increased UCMEIL’s total shareholding in RAKWCT to 54.39%, thereby making RAKWCT a subsidiary of UCMEIL, effective from July 10, 2024.

This strategic acquisition underscores UltraTech’s commitment to expanding its footprint in the Middle East, particularly in the white cement and construction materials market. With UCMEIL now holding a majority stake, UltraTech aims to leverage synergies and enhance its operational efficiency in the region.

Baker McKenzie served as the legal adviser to UCMEIL, ensuring compliance with local and international regulations throughout the transaction. Abu Dhabi Commercial Bank PJSC acted as the sole manager for the transaction, facilitating the financial aspects and smooth execution of the share acquisition.

The successful completion of this acquisition aligns with UltraTech’s strategic growth objectives and positions the company to capitalise on opportunities within the construction materials sector in the Middle East. With RAKWCT now a subsidiary, UltraTech is poised to strengthen its market presence and drive future growth in the region.

About UltraTech Cement Limited

UltraTech Cement manufactures and sells Cement and related products primarily in India. It is the Aditya Birla Group’s flagship cement company.

On July 11, 2024, the share price of UltraTech Cement Ltd opened at ₹11,599.00, touching the day’s high at ₹11,640.00, as of 9:58 AM on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

Enjoy Zero Brokerage on Equity Delivery
4.4 Cr+DOWNLOADS
Enjoy Zero Brokerage on Equity Delivery

Get the link to download the App

Send App Link
Open Free Demat Account!
Enjoy Zero Brokerage on Stock Investments.