India's UltraTech Cement to buy Kesoram's cement business in $645 mln deal (updated)

Kesoram Industries

30/11/2023 12:24

(Adds deal details throughout)
       BENGALURU, Nov 30 (Reuters) - India's UltraTech Cement
 ULTC.NS  said on Thursday it will buy the cement business of
Kesoram Industries  KSRM.NS  in an all stock deal valued at
53.79 billion rupees ($645.41 million), boosting its capacity
ambitions in a highly competitive sector. 
    As a part of the deal, UltraTech will issue one share for
every 52 shares of Kesoram and give UltraTech ownership of two
integrated cement units in southern Indian states of Karnataka
and Telangana. 
    The deal implies an offer price of 173.15 rupees per share,
a 33.75% premium to Kesoram's last close.  
    "The transaction will provide UltraTech the opportunity to
extend its footprint in the highly fragmented, competitive and
fast growing Western and Southern markets in the country,"
UltraTech said in a statement.
    The proposed transaction will accelerate UltraTech's path to
achieving its stated goal of 200 million tons per annum (mtpa)
cement capacity in India, it added. 
        
  
        
  


($1 = 83.3430 Indian rupees)

 (Reporting by Hritam Mukherjee in Bengaluru; Editing by
Nivedita Bhattacharjee)
 ((Hritam.Mukherjee@thomsonreuters.com; X: @MukherjeeHritam;))