Century Textiles and Industries gets shareholder nod for cement demerger with Ultratech
Century TextilesNSE -0.72 % and Industries’ minority shareholders on Wednesday gave their nod to the company’s decision to sell its cement assets to Ultratech.
81.39% votes of the shareholders went in favour of the deal by which Ultratech will buy BK Birla- led Century Textiles and Industries’ cement assets for Rs 8,621 crore through a share swap. The company will instead focus on its real estate arm that it wants to strategically grow in multiple markets.
Also, the company’s debt of Rs 4,300 crore at the end of June, 2018 will be brought down to Rs 1,300 crore with this transaction.
“In the NCLT convened shareholders meeting on 24th October 2018, minority shareholders showed full confidence and support to the Company’s decision to sell its cement assets to UltraTech CementNSE 1.17 % Limited at an enterprise value of Rs.8621 crore with 81.39% votes in favour of the transaction,” a release by the company said.
There had earlier been some concerns that a section of the company was not satisfied with the compensation that the cement assets was getting from Ultratech. However, Wednesday’s decision assuaged most fears. To be sure, 17% of institutional shareholders as well as 23% of non-institutional shareholders did oppose the proposal but the final score tipped the scale in favour of the passage of the demerger as planned.