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UltraTech Cement Middle East Investments Limited is a subsidiary of UltraTech Cement Limited, which, in turn, is a concern of Indian Aditya Birla Group
The board of directors of HeidelbergCement Bangladesh Limited has approved the acquisition of 100% stake of Emirates Cement Bangladesh and Emirates Power from UltraTech Cement Middle East Investments Limited, according to an announcement made on the Dhaka Stock Exchange (DSE) web site yesterday.
An agreement was signed in this regard between the Heidelberg Cement Bangladesh and UltraTech Cement Middle East Investments.
According to the DSE discloser, the amount payable to the UltraTech Cement Middle East Investments for completing this transaction shall be USD 21,518,684.56, which is equivalent to (approximately) Tk182.58 crore as on the day of this announcement.
The transaction was subject to completion of the necessary regulatory formalities and approvals in compliance with the laws of Bangladesh, said official announcement. There may also be a post-closing adjustment, pursuant to a post-closing audit.
UltraTech Cement Middle East Investments Limited is a subsidiary of UltraTech Cement Limited, which, in turn, is a concern of Indian Aditya Birla Group.
HeidelbergCement Bangladesh Limited is a sister concern of Germany-based multinational company Heidelberg Cement. The company meets 13% of the domestic demand for cement from two plants, located in Dhaka and Chittagong. Heidelberg Cement in Bangladesh was listed with the Dhaka Stock Exchange in 1989.
Cement market insiders have said that the acquisition took place at a time when the cement market in the country is facing extensive competition with production capacity in excess of the prevailing market demand along with rising operation costs, a major problem for the industry.
Emirates Cement Bangladesh is a private company, limited by shares and incorporated in Bangladesh, and engaged in manufacturing cement. Emirates Power Company is also a private company, limited by shares and incorporated in Bangladesh, and engaged in generating and supplying electricity.
According to the Economic Times report, UltraTech Cement’s revenue stood at around $5 billion in 2018-19 financial year. The company has its manufacturing units in India, UAE, Bahrain, Bangladesh, and Sri Lanka.
HeidelbergCement Bangladesh’s paid-up capital is Tk56 crore and authorized capital is Tk100 crore. Each share of the company closed at Tk174.20 each yesterday at the DSE.
The sponsor-directors of the HeidelbergCement Bangladesh Limited hold 60.67% stake in the company, while institutional investors, foreign investors, and the general public own 25.92%, 1.15%, and 12.26% shares of the company.
The principal activity of the company is manufacturing and marketing of gray cement under the brand name of “Ruby Cement” and “Scan Cement”. The factory is located in Narayanganj and Chittagong.
(DT)
