ULTRATECH TO BUY CENTURY’S CEMENT BIZ

New Delhi, May 20: UltraTech said it would acquire the cement business of BK Birla Group firm 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 on Sunday, approved a scheme of arrangement amongst Century Textiles and Industries and its respective shareholders and creditors, the Aditya Birla Group firm said.

According to the scheme, the shareholders of Century would get one equity share of UltraTech, having a face `10 each for every eight equity shares of Century of face value `10 each. “UltraTech will issue 1.4 crore new equity shares to the shareholders of Century, which will increase its equity capital to `288.58crore, divided into 28.86 crores equity shares of `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 .