India: UltraTech Cement has entered into an energy supply agreement and a share subscription and shareholders agreement to acquire a 13.99% equity stake in FPEL Services, a company engaged in the generation and transmission of renewable energy from wind. It will pay US$1.34m for the stake. Ultratech said that the acquisition will help it to meet its renewable energy requirements, optimise its energy costs and allow it to comply with regulatory requirements for captive power consumption under relevant electricity laws.
Separately, The India Cements, a subsidiary of UltraTech Cement, has also entered into similar agreements to acquire a 12.48% equity stake in FPEL Services for US$1.13m. The transactions are expected to be completed within 180 days from the execution of the energy supply agreement and the share subscription and shareholders agreement.