UltraTech, Samruddhi merger

The cement consolidation plan of Aditya Birla group, involving merger of Samruddhi Cement into UltraTech Cement, has got the go-ahead of the respective boards on Sunday, which will create the largest cement company in India with an annual capacity of close to 50 million tonne. The boards have unanimously approved the merger of Samruddhi with UltraTech at a recommended exchange ratio of 4:7, according to a joint press release issued by the two companies. This means Samruddhi shareholders will receive 4 shares of UltraTech (face value of Rs 10 each) for every 7 shares held in Samruddhi (face value of Rs 5). On completion of merger, Samruddhi shareholders will get a direct participation in the largest domestic Cement Company, which will be tenth largest in the world. The swap ratio is in line with analysts' expectations.

Nitika

PGDM-3rd sem

sec-B.