Abu Dhabi – Mubasher: The general assembly meeting of Ras Al Khaimah Company for White Cement and Construction Materials (RAK White Cement) approved, on 9 July 2024, the conditional cash offer from Indian manufacturer UltraTech Cement Middle East Investments Limited to acquire an additional 25% of the UAE company’s capital.
UltraTech Cement plans to acquire 125.03 million shares at a value of AED 1.15 in cash for each share of RAK White Cement, according to a bourse filing.
The potential stake represents 25% of the issued and paid-up ordinary share capital of the UAE company, not already held by UltraTech Cement which owns 147 million shares equivalent to 29.39% equity in RAK White Cement before the takeover transaction.
The two parties first entered into the implementation agreement on 29 May 2024 after RAK White Cement had received a notification on the 27th of the month from UltraTech Cement as one of the UAE firm’s major shareholders showing its intention to submit an offer for partial acquisition offer.
UltraTech Cement's initial bid included a takeover of an additional 158.04 million shares representing 31.60% of RAK White Cement’s share capital at the same in-cash value of AED 1.15 per share.
Later on 25 June this year, the UAE company was notified of the final offer details upon the Securities and Commodities Authority’s (SCA) approval to amend UltraTech Cement’s acquisition offer by reducing the targeted shareholding from 31.60% to 25%.
It is worth noting that during the first quarter (Q1) of 2024, the UAE cement manufacturer achieved net profits worth AED 13.12 million and revenues of AED 63.03 million.
