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UltraTech of India scales back bid for RAK Cement

By Divsha Bhat
RAK Cement Alamy
Foreign investors hold 30 percent in RAK Cement Co for White Cement and Construction Materials, with UAE nationals holding 68 percent
  • Indian company already owns 29%
  • Offer after month of negotiations
  • Now wants an extra 25%

India’s UltraTech Cement, one of the largest cement makers in the world, has scaled back its offer to acquire a larger stake in an Abu Dhabi-listed, Ras al-Khaimah-based company.

UltraTech was initially looking to acquire an extra 31.6 percent stake (158 million shares) in RAK Cement Co for White Cement and Construction Materials (RAKWCT).

However, UltraTech has now lowered its sights to 25 percent according to a disclosure.

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UltraTech Cement Middle East Investments Limited, the company’s wholly owned subsidiary in UAE, currently holds 29 per cent in the RAK company, bought in April 2022 for $101 million.

The revised offer comes after a month of negotiations. It is valid until July 26, an extension from the initial June 24 deadline. 

Over the past month, the RAK company’s stock has gained 14 per cent. 

However, compared to a year ago the shares are down by 9 percent. 

The shares are currently trading on ADX at AED1.14.

Foreign investors hold 30 percent in RAKWCT, ADX data shows, with UAE nationals holding 68 percent.

RAKWCT, which was incorporated in September 1980, had turnover of nearly $70 million last year.

UltraTech Cement, based in Mumbai, has a combined capacity of 120 million tonnes per annum of grey cement.

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