UltraTech proposes reduced cash offer for RAK White shares

The UAE Securities and Commodities Authority has approved the strategic decision of Aditya Birla Group-owned UltraTech Middle East Investment’s regional operations. This decision involves reducing the size of its cash offer component for an additional stake in Ras Al Khaimah Co for White Cement & Construction Materials, a move that is expected to strengthen the company’s position in the market.

According to local media, instead of putting up cash for 31.6 per cent in the RAK entity, UltraTech Cement is willing to buy 25 per cent via the conditional cash offer. Over the past month, the RAK company’s stock has shown a promising upward trend, gaining 14 per cent. 

UltraTech Middle East Investment, based in Jebel Ali, currently holds 29 per cent of the RAK entity. The company’s latest offer, which was extended from 14.00h on 24 June, will be open until 26 July. Last month, India made a conditional offer for the new stake buy.

According to local information, foreign investors currently hold 29.6 per cent of Ras Al Khaimah Co for White Cement & Construction Materials, with UAE Nationals holding  67.64 per cent. The UAE company had profits of just over AED20.5m (US$5.58m) in 2023 against AED21m a year before.