Kesoram Industries’ board of directors has approved a Composite Scheme of Arrangement amongst the Company, and UltraTech Cement and their respective shareholders and creditors for demerger of its cement division into UltraTech and reduction and cancellation of the preference share capital of the Company. The transaction is expected to be consummated within 9-12 months subject to above regulatory approvals.
The proposed transaction will unlock value of the Cement Business for the shareholders of the Company and also substantially deleverage the balance sheet including reduction of debt and outflow of interest. Pursuant to the proposed transaction, the shareholders of the Company will receive the shares of UltraTech, the largest cement producer in India and thus continue to participate in the value creation from the cement business.
Kesoram Industries has now become a pure cement company after it demerged the tyres and rayon business.
