UltraTech Cements to acquire 23 pc stake in India Cements
Deccan ChronicleUltraTech Cements, owned by Aditya Birla Group, announced its plans to acquire a 23 per cent stake in Chennai-based India Cements, raising speculations over a hostile takeover. However, as per market sources, the shares have been mostly bought from D-Mart founder Radhakishan Damani and his associated entities, who held a 20.78 per cent stake in India Cements. ELM Park Fund Ltd holds a 5.58 per cent stake and LIC holds a 3.6 per cent stake in India Cements. India Cements owner N Srinivasan who, along with other promoter group members, holds only a 28.42 per cent stake, which can trigger a hostile takeover.Though the 23 per cent stake purchase will not trigger a mandatory open offer of 26 per cent from public shareholders, UltraTech can go ahead if it intends to take over control of the company.