Century Textiles gives up cement business

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Khaitan & Co advised Aditya Birla Group’s UltraTech on structuring its acquisition of the cement business of BK Birla group’s Century Textiles and Industries. The firm also drafted the scheme of arrangement and other transaction documents including the implementation agreement and advice on regulatory approvals.

UltraTech’s board of directors approved the scheme of arrangement with Century, as did their respective shareholders and creditors. UltraTech will issue 14 million new equity shares to the shareholders of Century, which will increase its equity capital to ₹2.8 billion (US$42 million).

Khaitan & Co‘s core transaction team comprised partners Haigreve Khaitan and Mehul Shah, principal associate Saswat Subasit, senior associate Sanket Shah and associate D Preethika. The team was supported by senior associates Ritwik Kulkarni and Aman Yagnik on scheme-related aspects and associate partner Shivanshu Thaplyal and associate Harshita Khurana on infrastructure, mining and other regulatory aspects.

Century’s shares are listed on the National Stock Exchange and the Bombay Stock Exchange. The transaction requires the approval of shareholders, creditors, stock exchanges, the National Company Law Tribunal and Competition Commission of India. The deal is expected to be completed before February 2019. The acquisition will make UltraTech the world’s third-largest cement maker outside of China.