In a significant move, the India Cements Limited, a subsidiary of UltraTech Cement Limited, has informed the stock exchange that its wholly-owned subsidiary PT Adcoal Energindo, Indonesia, has entered into a share sale and purchase agreement to sell its entire equity investment in its Indonesian associate PT Mitra Setia Tanah Bumbu.
Upon completion of the transaction, PT Mitra Setia Tanah Bumbu will cease to be an associate of India Cements. The agreement was signed on 3 July and the sale is expected to be completed within six months. The consideration for the sale is Indonesian Rupiah 2,695,000,000. The agreement is entered into with Finsa Noorcahyo F and Hari Sutikno, both Indonesian citizens.
The associate contributed a turnover of ₹93.23 crore in the last financial year, with a net worth of ₹80.74 crore, accounting for about 1.46% of India Cements’ net worth as of December 31, 2024. Ever since UltraTech acquired The India Cements from N. Srinivasan and family, the new owner has been on a selling drive, getting rid of shares in assorted outfits owned by The India Cements. Perhaps, the sale exercise is intended to retain focus on the core business of cement.
