scorecardresearchAdani family makes an open offer to acquire 26% stake in Ambuja Cements, ACC, priced at $6.5 billion

Adani family makes an open offer to acquire 26% stake in Ambuja Cements, ACC, priced at $6.5 billion

Updated: 17 May 2022, 09:39 AM IST
TL;DR.
Adani Group has made an open offer to its public shareholders to acquire up to 51.63 crore equity shares in Ambuja Cement, representing 26 per cent. In ACC, it has offered to acquire up to 4.89 crore shares, representing 26 per cent of the expanded share capital. 
Adani Group now emerges as the country's second-largest cement manufacturer, with 70 million tonnes of capacity annually.

Adani Group now emerges as the country's second-largest cement manufacturer, with 70 million tonnes of capacity annually.

On Monday, the Adani family made an open offer to acquire a 26% stake in each of its two listed firms, Ambuja Cements and ACC Ltd, from public shareholders for $6.5 billion, a day after announcing a $10.5 billion deal to acquire Holcim's India operations.

Gautam Adani's group made an open offer of 385 per share for Ambuja Cements Ltd and 2,300 per share for ACC Ltd.

For Ambuja Cements, Adani Group has made an open offer to its public shareholders to acquire up to 51.63 crore equity shares, representing 26 per cent of the expanded share capital, aggregating to a total consideration of 19,879.57 crore.

While for ACC Ltd, Adani Group has offered to acquire up to 4.89 crore shares held by public shareholders, representing 26 per cent of the expanded share capital, aggregating to a total consideration of 11,259.97 crore, the update by ICICI Securities and Deutsche Equities India, who are the joint managers to the offer, said.

ICICI Securities and Deutsche Equities India said that Holderfin BV, a company incorporated in the Netherlands, was selling its entire stake in HolderInd Investments, a Mauritius-based firm which owns stakes in Ambuja Cements and ACC. Ambuja, in turn, owns 50 per cent in ACC.

Further, the open offer is being made by Endeavour Trade and Investment, a special purpose vehicle, set up in Mauritius.

Endeavour Trade and Investment is promoted by Acropolis Trade and Investment, which is controlled by certain members of the Adani family, it added.

On Sunday, Adani Group announced a deal to acquire a controlling stake in Holcim Ltd's businesses in India for $10.5 billion ( 81,300 crore approximately), marking the ports-to-energy conglomerate's entry into the cement sector.

Holcim, through its subsidiaries, holds 63.19 per cent in Ambuja Cements and 54.53 per cent in ACC (of which 50.05 per cent is held through Ambuja Cements).

Ambuja Cements and ACC currently have a combined installed production capacity of 70 million tonnes per annum.

Meanwhile, ACC's share price soared over 4 per cent to 2,192.15/share and Ambuja Cements' stock price rose more than 2.5 per cent to 368.50/share in Monday's trade.

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First Published: 17 May 2022, 09:39 AM IST