New Delhi, Dec 27 (PTI) Leading cement producer UltraTech Cement on Friday announced the acquisition of a minority stake of 8.69 per cent from the promoters of Meghalaya-based Star Cement in a deal worth up to Rs 851 crore.
Star Cement, having an installed capacity of 7.7 MTPA (million tonnes per annum), has a presence in the markets of north-eastern India and is rapidly expanding in West Bengal and Bihar.
The development comes a few days after the Aditya Birla group firm completed the acquisition of a controlling stake in India Cements Ltd, turning south-based company into its subsidiary.
According to the company, some promoter and promoter group entities of Star Cement “propose to sell their equity holding in Star Cement and have approached the company for the same”.
“The board of directors of the company at its meeting held today considered the proposal and approved making an investment to acquire non-controlling minority stake up to 3.70 crores equity shares of Star Cement at a price not exceeding Rs 235/- per share, excluding STT, stamp duty and other levies,” it said.
Over the cost of acquisition or the price at which shares are acquired, UltraTech said it will “not exceed Rs 851 crore, excluding STT”.
Star Cement, which was incorporated in November 2001, had a turnover of Rs 2,910.66 crore in FY24.
UltraTech is the leading cement company in India with an installed capacity of 156.66 MTPA of grey cement. PTI KRH HVA
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