M&A

M&A

UltraTech to buy Kesoram's cement biz in Rs.7,600-Cr deal

Press Release   BSE Announcement   Economic Times  

UltraTech Cement will buy the cement business of fellow publicly listed Kesoram Industries (KIL) in an all stock deal at an estimated enterprise value of around INR 7,600 crore. KIL shareholders will receive 1 UltraTech share for every 52 shares held by them. The Cement Business of Kesoram consists of 2 integrated cement units at Sedam (Karnataka) and Basantnagar (Telangana) with a total capacity of 10.75 mtpa. Out of this total capacity, 8.50 mtpa is clinker backed and 2.25 mtpa is surplus grinding capacity. The cement business also has a 0.66 mtpa packing plant in Solapur, Maharashtra. Upon completion, UltraTech's cement capacity will rise to 149.14 mtpa including its overseas operations. JM Financial Limited is the exclusive financial advisor to the seller. DAM Capital Advisors Limited has provided an opinion on fairness of the share exchange ratios. Khaitan & Co, Kolkata are the legal advisors to the seller. Bansi S. Mehta Valuers LLP and PwC Business Consulting Services LLP are the independent joint valuers for the buyer. ICICI Securities has provided an fairness opinion on the valuation. Khaitan & Co, Mumbai are the legal advisors and Trilegal will be advising on Competition Law matters.