India's UltraTech now top shareholder in Ras Al Khaimah cement firm

Dubai: The board of Ras Al Khaimah Co. for White Cement & Construction Materials, on Thursday, met and approved the conditional cash offer from the regional operations of India's UltraTech Cement to acquire an additional 25 per cent of the Ras Al Khaimah-based plant.

This was a day after plans were revealed in a statement on ADX that the UltraTech Cement unit would acquire additional 125.03 million shares for Dh1.15 cash per share of RAK White Cement, which represents a 25 per cent stake. On Thursday, the UAE firm, in a bourse filing, confirmed settlement of UltraTech Cement unit's final purchase of 133.6 million shares, or 26.7 per cent stake.

UltraTech Cement already owns 147 million shares, which is equivalent to 29.39 per cent equity or stake, in RAK White Cement before the takeover transaction. The latest acquisition of a further 26.7 per cent stake makes the Ultratech unit a majority shareholder at 56.09 per cent stake and turns the UAE firm into an UltraTech Cement unit.

Late last month, UltraTech Middle East Investment cut the size of its cash offer component for an additional stake in Ras Al Khaimah Co. for White Cement & Construction Materials. Instead of putting up cash for 31.6 per cent in the RAK entity, UltraTech Cement unit said it was willing to buy 25 per cent via the conditional cash offer.

This has been approved by the UAE regulator Securities & Commodities Authority. According to the ADX data, UAE Nationals currently hold the rest of the shares in Ras Al Khaimah Co. for White Cement & Construction Materials.