UltraTech Cement Open Offer for ICL Starts Sept 19

New Delhi, Aug 9 (PTI) UltraTech Cement's Rs 3,142 crore open offer for acquiring 26 per cent stake in India Cements Ltd (ICL) will tentatively open on September 19 and close on October 3.

The Aditya Birla group flagship company has proposed to acquire 8.05 crore shares of ICL at Rs 390 apiece, said the draft of the offer submitted to bourses.

The offer price is 6.3 per cent higher than the closing price of Rs 366.90 of ICL at BSE.

The mandatory open offer was triggered after UltraTech on July 28 announced to acquire 32.72 per cent stake in ICL from promoters and their associates for Rs 3,954 crore.

If subscribed fully, then based of the Rs 390 price, the open offer will come in at Rs 3,142.35 crore.

Before this, UltraTech had acquired a non-controlling stake of around 23 per cent in ICL through two block deals, at around Rs 1,900 crore.

The shareholding of UltraTech after the acquisition of 32.72 per cent stake in ICL from promoters and their associates, will be 55.49 per cent.

UltraTech in the draft said the limited availability of limestone in Tamil Nadu has resulted in restrictions on setting up new integrated units in the state.

The company's last integrated unit in Tamil Nadu was acquired by its parent Grasim Industries, in August 1998.

"The underlying transaction is, therefore, an endeavour to extend the acquirer's footprint and presence in the highly fragmented, competitive and fast-growing southern market in the country, particularly Tamil Nadu, where it has a limited presence," it said.