Ultra Tech to acquire Century Textiles' cement business

Aditya Birla Group firm UltraTech said it would acquire the cement business of BK Birla Group company Century Textiles and Industries through a share swap deal, a move which would further consolidate its position as market leader in the segment.

The Board of Directors of UltraTech Cement, at its meeting held today, approved a scheme of arrangement amongst Century Textiles and Industries and its respective shareholders and creditors, the Aditya Birla Group firm said in a statement.

According to the scheme, the shareholders of Century would get one equity share of UltraTech, having a face Rs 10/- each for every eight equity shares of Century of face value Rs 10 each.

"UltraTech will issue 1.4crore new equity shares to the shareholders of Century, which will increase its equity capital to Rs 288.58crore, divided into 28.86 crores equity shares of Rs. 10/- each," said UltraTech.

"The acquisition will contribute positively to the company's earnings," it said further.

The transaction would provide UltraTech, opportunity to further strengthen its presence in the east and central markets and extending its footprint in the Western and Southern markets in the country.

"The operations will be bolstered by economies of scale arising out of synergies in procurement and logistics costs; creation of efficiencies by reducing time to market, enhancing competitiveness as well as customer service," said UltraTech
"Upon consummation, the Company's cement capacity will stand augmented to 109.9 mtpa including its overseas operations," the company said adding "This will position UltraTech as the 3rd largest Cement player globally (excluding China)."