UltraTech Cement sells entire stake in Chinese unit for $120 million

UltraTech Cement has sold its entire holding in its Chinese unit for $120 million (Rs 900 crore), the Aditya Birla Group company said in a statement to stock exchanges.

Krishna Holdings, a subsidiary of UltraTech Nathdwara Cement incorporated in Singapore, will divest its entire 92.5 percent stake in Shandong Binani Rongan Cement, the company said on July 7.

"In terms of the agreement, Krishna will divest its entire shareholding at an enterprise value of RMB 845 million +/- working capital adjustments on closing, equivalent of approximately US$ 120 million subject to customary closing conditions and regulatory approvals in compliance with the local laws," UltraTech Cement said, without specifying the buyer's name.

The Chinese company was added to Ultratech Cement's portfolio in 2018 after it acquired Binani Cement.

The JV set up as a 70:30 partnership between Binani Cement and China's Rizhao Rongan Construction Materials.

UltraTech's decision comes at a time when calls for boycott Chinese products are getting amid border standoff and against the backdrop of the government's vocal for local push.