UltraTech Cement's open offer to acquire a 26% stake in India Cements Ltd. is scheduled to tentatively begin on Sept. 19 and conclude on Oct. 3.
The Aditya Birla group's flagship company plans to purchase 8.05 crore shares of India Cements at a price of Rs 390 each, according to the draft offer submitted to the stock exchanges.
This offer price is 6.3% higher than Friday's closing price of India Cements shares of Rs 366.90 on the BSE.
The mandatory open offer was triggered by UltraTech's announcement on July 28 to acquire a 32.72% stake in India Cements from its promoters and their associates for Rs 3,954 crore.
If fully subscribed, the open offer at Rs 390 per share would amount to Rs 3,142.35 crore.
Before this, UltraTech had acquired a non-controlling stake of around 23% in India Cements through two block deals, at around Rs 1,900 crore.
The shareholding of UltraTech after the acquisition of 32.72% stake in ICL from promoters and their associates, will be 55.49%.
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 Aug. 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.
(With Inputs From PTI)
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