Adani Offers to Acquire 26% of Ambuja Cements and ACC from Open Market
A day after announcing a $10.5 billion deal to acquire Holcim’s India business, the Adani family has made an open offer to buy a 26 percent stake each in its two publicly traded companies, Ambuja Cements and ACC. Ltd, to be acquired from public shareholders, for a price of $6.5 billion.
On Monday, Gautam Adani’s group, through its Mauritius-based subsidiary Endeavor Trade and Investment, made an open offer of Rs 385 per share for Ambuja Cements Ltd and Rs 2,300 per share for ACC Ltd.
For Ambuja Cements, Adani group has made an open offer to its public shareholders to acquire shares of up to 51.63 crore, representing 26 percent of the expanded share capital, along with a total consideration of Rs 19,879.57 crore.
While for ACC Ltd, the Adani group has offered to acquire up to 4.89 crore shares held by public shareholders representing 26 percent of the expanded share capital, together representing a total consideration of Rs 11,259.97 crore .
This would be “subject to receipt of required regulatory approval,” it said.
The public announcement was issued jointly by ICICI Securities and Deutsche Equities India, the joint operators of the open offer in exchanges.
This open offer has come about following the share purchase agreement between the Adani group and Holcim to acquire a majority stake in the latter’s companies in India “for a total consideration of USD 50,181.04 crore”.
Acropolis Trade and Investment Ltd promotes trading and investment activities.
“Ultimate beneficial ownership of Acropolis Trade and Investment Ltd is held by certain members of the Adani family,” the statement read.
On Sunday, the Adani group announced a deal to acquire a controlling stake in Holcim Ltd’s businesses in India for $10.5 billion (approximately Rs 81,300 crore), bringing the port-to-energy conglomerate into the cement sector. .
The Adani Group will acquire 63.1 percent of Ambuja Cements Ltd and related assets. Ambuja’s local subsidiaries include ACC Ltd, which is also listed on the stock exchange.
The Adani family has announced via an offshore special purpose vehicle that it has entered into definitive agreements to acquire Holcim Ltd’s entire interest in two of India’s leading cement companies – Ambuja Cements Ltd and ACC Ltd. in a statement.
Holcim, through its subsidiaries, owns 63.19 percent in Ambuja Cements and 54.53 percent in ACC (of which 50.05 percent is owned by Ambuja Cements).
Holcim had said in a statement: “The corresponding share prices of Rs 385 for Ambuja Cement and Rs 2,300 for ACC translate into cash proceeds of CHF 6.4 billion (Swiss francs) for Holcim.”
Last month the world’s largest cement maker Holcim announced his departure from the country after a long battle here.
Ambuja Cements and ACC currently have a combined installed production capacity of 70 million tons per year.
Together, the two companies have 23 cement plants, 14 milling stations, 80 ready-mix concrete plants and more than 50,000 channel partners across India.
