Ultratech Cement Poised for Global Expansion in White Cement: Makes Strategic Investment in UAE

Ultratech Cement Limited, a leading Indian cement manufacturer, announced a strategic expansion move through its wholly-owned subsidiary, UltraTech Cement Middle East Investments Limited (UCMEIL).

UCMEIL is poised to acquire a significant stake in Ras al Khaimah Co. for White Cement and Construction Materials PSC (RAKWCT), a prominent company listed on the Abu Dhabi Stock Exchange.

Acquisition Details and Rationale

UCMEIL has announced its intention to make a partial conditional cash offer to acquire 158,049,610 shares, representing 29.39% of RAKWCT’s issued and paid-up share capital. This strategic investment will provide Ultratech Cement with a strong foothold in the white cement market within the UAE and beyond.

The acquisition is driven by Ultratech Cement’s desire to leverage its expertise in white cement manufacturing and expand RAKWCT’s business across local, regional, and global markets. This expansion will include introducing modern products like wall care putty and other innovative offerings to RAKWCT’s portfolio.

Timeline and Offer Details

The acquisition process is expected to be completed within 90 days from the date the offer is formally presented. The offer price will be strategically determined based on a set of criteria, ensuring a fair and competitive value for RAKWCT shareholders. These criteria include:

• The market price on the first day of the offer.
• Closing price before the official commencement of the offer.
• Average price during the three months preceding the offer’s launch.
• Highest price paid by Ultratech Cement to acquire shares in the preceding 12 months.

About Ras al Khaimah Co. (RAKWCT)

RAKWCT is a well-established company headquartered in Ras Al Khaimah, United Arab Emirates. Listed on the Abu Dhabi Stock Exchange, RAKWCT is a key player in the white cement and construction materials sector.

Significance of the Acquisition

Ultratech Cement’s strategic investment in RAKWCT signifies its commitment to expanding its global footprint in the white cement market. This acquisition will enable Ultratech Cement to leverage RAKWCT’s existing infrastructure and market presence while introducing Ultratech Cement’s expertise and innovative products.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.