Century Textiles-UltraTech Cement deal questioned

UltraTech Cement’s recent deal to acquire B K Birla firm Century Textiles’ cement business is being questioned by minority shareholders. The deal, a few minority shareholders suggest, could have been finalised through an open bidding process to arrive at a fair market value. Not just minority shareholders, proxy advisory firms also seem divided on the deal. Firms like Institutional Investor Advisory Services (IiAS) have raised certain concerns. To be sure, the process to convince shareholders is going on. Officials are reaching out and explaining the deal merits to fund managers as part of their normal process. Top executives from both companies remain confident the deal is at the best valuation and that shareholders will eventually see its true value.