KUMAR MANGALAM BIRLA is known to be a level-headed man, not a businessman who takes irrational decisions. Which is why it didn't surprise too many when the Aditya Birla Group didn't chase the ACC and Ambuja Cements sale deals by bidding up the price. As Birla later said in interviews, the competition complexities could have been resolved but the transaction simply did not make sense financially; paying a hefty $10 billion plus for 67 million tonne per annum (MTPA) would not have created value.
He believed there would be other options-greenfield and brownfield that would be more value-creating. "I don't think we are going to start bidding for assets much more aggressively only because there's a new entrepreneur in the sector.
That's not how it works for us. It must create value," he said.
In August, addressing UltraTech Cement shareholders, Birla set an ambitious target of reaching a production capacity of 200 MTPA. In the following months, the company made two acquisitions and committed to invest ₹13,000 crore in the third phase of capacity expansion. In November, UltraTech announced it was buying the cement assets of Kesoram through a pure share swap at an enterprise value of ₹7,600 crore.
The transaction involved no cash outgo, with one equity share of Ultratech being issued for every 52 equity shares of Kesoram.
Diese Geschichte stammt aus der December 25, 2023-Ausgabe von Financial Express Mumbai.
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Diese Geschichte stammt aus der December 25, 2023-Ausgabe von Financial Express Mumbai.
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