Adani offers to buy 26% of ACC, Ambuja Cements from open mkt
The Adani group has made an open offer to to acquire up to 516.3 million equity shares
NEW DELHI: A day after announcing a $10.5 billion deal to acquire Holcim’s India business, Gautam Adani’s group on Monday, through its Mauritiusbased subsidiary Endeavour Trade and Investment, has made an open offer at ₹385 per share for Ambuja Cements Ltd and ₹2,300 per share for ACC Ltd to acquire a 26% stake each in the two listed companies from public shareholders.
For Ambuja Cements, the Adani group has made an open offer to its public shareholders to acquire up to 516.3 million equity shares.
This represents 26% of the expanded share capital, aggregating to a total consideration of ₹19,879.57 crore.
For ACC Ltd, the Adani group has offered to acquire up to 48.9 million shares held by public shareholders.
This represents 26% of the expanded share capital, aggreily,” gating to a total consideration of ₹11,259.97 crore.
This would be “subject to the receipt of the required statutory approval,” it said.
The public announcement was jointly issued by ICICI Securities and Deutsche Equities India, the joint managers to the open offer at the bourses.
This open offer has come in the wake of the execution of the share purchase agreement between the Adani group and Holchim to acquire controlling stake in the latter’s businesses in India “for an aggregate consideration of USD equivalent to ₹50,181.04 crore”.
Endeavour Trade and Investment is promoted by Acropolis Trade and Investment Ltd.
“The ultimate beneficial ownership of Acropolis Trade and Investment Ltd is held by certain members of the Adani fammarket the notice said.
On Sunday, the Adani group announced a deal to acquire a controlling stake in Holcim Ltd’s businesses in India for $10.5 billion (about ₹81,300 crore) , marking the ports-to-energy conglomerate’s entry into the cement sector.
The Adani Group will acquire 63.1% of Ambuja Cements Ltd along with related assets. Ambuja’s local subsidiaries include ACC Ltd, which is also publicly traded.
“The Adani Family, through an offshore special purpose vehicle, announced that it had entered into definitive agreements for the acquisition of Switzerland-based Holcim Ltd’s entire stake in two of India’s leading cement companies, Ambuja Cements Ltd and ACC Ltd,” the group said.
Holcim, through its subsidiaries, holds 63.19% in Ambuja Cements and 54.53% in ACC (of which 50.05% is held through Ambuja Cements).
“The corresponding offer share prices of ₹385 for Ambuja Cement and ₹2,300 for ACC translate into cash proceeds of CHF 6.4 billion (Swiss Franc) for Holcim,” the world’s largest cement maker had said.
Holcim had last month announced its exit from the country after struggling here for a long.
Ambuja Cements and ACC currently have a combined installed production capacity of 70 million tonnes per annum.
The two companies combined have as many as 23 cement plants, 14 grinding stations, 80 ready-mix concrete plants and more than 50,000 channel partners across the country.