Ultratech-Star Cement Deal: Adani Group’s efforts to accumulate cement firms in the north-eastern state have suffered a serious setback. The company on which Adani Group was eyeing has offered its stake in Adani Group’s greatest rival in the cement enterprise to Aditya Birla Group’s UltraTech Cement. UltraTech Cement Limited has introduced that it will purchase 8.69 % non-controlling minority stake in Star Cement Limited for Rs 851 crore.
UltraTech Cement’s board permitted the deal
UltraTech Cement stated in its regulatory submitting with the inventory exchanges that some promoters and promoter group entities of Star Cement Limited have approached the company to promote stake in Star Cement. A gathering of the Board of Directors of the company was held at the moment in which the proposal of Star Cement was mentioned and the Board of Directors has permitted the buy of three.70 crore fairness shares at Rs 235 as non-minority stake.
Rs 851 crore paid in money
In the disclosure, UltraTech Cement stated that the course of of buying stake in Star Cement might be accomplished inside a month and Rs 851 crore might be paid in money for this deal. If we have a look at the turnover of Star Cement in the final three years, the turnover was Rs 2221.81 crore in the monetary 12 months 2021-22, Rs 2704.84 crore in the monetary 12 months 2022-23 and Rs 2910.66 crore in 2023-24. After this deal, Star Cement inventory is buying and selling at Rs 235.60 with an increase of two.55 %. Whereas the inventory of UltraTech Cement is buying and selling with a decline.
UltraTech gave a shock!
Earlier in the first week of this month, it was reported that Adani Group is making ready to accumulate a cement company in the north-eastern state. And talks are additionally going on for the acquisition of the group’s cement company Ambuja Cement with Star Cement. Due to this information, there was a pointy rise in the inventory of Star Cement. Moneycontrol had instructed in its report that Adani Group has appointed consultancy agency EY to assessment the transaction. Star Cement has the highest market share in the north-eastern states. The manufacturing capability of the company is 7.7 million tonnes per 12 months, which the company goals to extend to 30 million tonnes by 2030. But the deal on which Adani Group was eyeing appears to be going out of hand at the second.
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