The Financial Express
Mumbai, 21 June 2004
Ultra Tech Cemco, the cement company carved out
of Larsen & Toubros (L&T) demerged
cement business, is all set to become a subsidiary
of Grasim Industries. The AV Birla Group flagship
has received an overwhelming response to its open
offer for an additional 30 per cent stake in CemCo,
taking its overall stake to 51 per cent.
total of 8.39 crore shares of CemCo qualified
to participate in the open offer. This is excluding
the shares held by Grasim and L&T. Over 6
crore shares constituting over 70 per cent of
the eligible shares have been tendered in the
open offer. The acceptance ratio is likely to
be around 60 per cent.
offer was for 3.73 crore shares at Rs 342.60 per
sections of shareholders in CemCo retail
public, domestic mutual fund, banks, FIIs and
GDR holders and financial institutions
participated in the open offer, according to a
release issued by Grasim.
shareholders of CemCo have thus capitalised on
the opportunity to encash the value at an attractive
open offer price, according to the company.
had already deposited the full value of the 30
per cent open offer, equivalent to Rs 1,279 crore
in an escrow account and will make payment to
the successful offerees as per schedule. The payment
will also include the proportionate interest accrued
on the escrow deposit, which will be in addition
to the open offer.
added that all the FIs, including Life Insurance
Corporation of India (LIC) and the Specified Undertaking
of Unit Trust of India, who were the two major
stakeholders with around 14 per cent and 8 per
cent stake in CemCo, have tendered their entire
stake in the open offer.
will also shortly acquire 8.5 per cent stake in
CemCo from L&T as per the scheme of arrangement
and sell to the L&T Employees Trust the stake
held by it in L&T. This will take place shortly,
according to Grasim CFO DD Rathi.
the payment to the successful offerers and the
acquisition of the L&T stake, the board of
CemCo will be reconstituted.
successful completion of the open offer marks
the end to one of the most fascinating battles
fought in Indian corporate history. With twenty-nine
million tonne cement capacity now firmly under
his control, AV Birla Group chairman Kumar Mangalam
Birla is now undoubtedly the commodity king of