The open offers for the shareholders of Ambuja Cements and ACC will begin from July 6 and close on July 19, as per a tentative schedule published by the Adani family today. With an investment of $4 billion (Rs 31,139 crore), together these two open offers might constitute the biggest open offer in corporate Indian history. The mandatory open offer for the companies was made by a Mauritius based company owned by the Adani family after they acquired a 63 per cent stake in Ambuja and 4.5 per cent in ACC from Swiss cement major, Holcim for $6.5 billion. Ambuja owns a 50 per cent stake in ACC. The entire acquisition will cost the Adani family around $10.5 billion (Rs 81,000 crore). The entire open offer exercise will be over by the first week of August, as per notices issued by both companies.
On a combined basis, the Adani open offers would pip Unilever open offer when in 2013, Unilever had announced a Rs 29,220 crore open offer to acquire 487 million shares of Hindustan Unilever, to raise its stake by about 22 per cent. According to the notice, Endeavour Trade and Investment, a Mauritius-based entity owned by the Adani family, will buy up to 516 million shares, representing 26 per cent of the share capital of Ambuja Cements, at a price of Rs 385 per share, aggregating to a total consideration of Rs 19,879 crore. Similarly, the Adani family offered to buy 26 per cent of ACC at a price of Rs 2,300 per share for Rs 11,259 crore (assuming full acceptance). The independent directors of both companies will be publishing their recommendation by July 4th to the shareholders of both companies. The transactions will be subject to getting various regulators approvals including the Sebi and the Competition Commission of India (CCI). The Adani family has opened an escrow account with Barclays Bank in Mumbai and made a cash deposit to fund both offers. Ambuja and ACC currently have a combined installed production capacity of 70 million tonnes per annum. The two companies together have 23 cement plants, 14 grinding stations, 80 ready-mix concrete plants, and over 50,000 channel partners across India. The acquisition will make the Adani family the second biggest cement maker in India after Ultratech. Target Company Acquirer Date of Public Announcement Offer Opening Date OFFER CLOSING DATE OFFER SIZE ( Shrs) % of equity capital Offer Price ( Rs) Value (Rs crore) Hindustan Unilever Ltd. Unilever Plc 30-04-2013 21-06-2013 04-07-2013 487004772 22.52 600 29220.286 Vedanta Limited Vedanta Resources Limited 09-01-2021 23-03-2021 07-04-2021 651000000 17.51 235 15298.5 Cairn India Limited Tsehl & Vedanta Resources Plc 17-08-2010 11-04-2011 30-04-2011 383985368 20 355 13631.481 Idbi Bank Limited Life Insurance Corporation Of India 05-10-2018 26-12-2018 08-01-2019 2041512929 26 61.73 12602.259 United Spirits Ltd. Relay, A Pvt Ltd. 15-04-2014 06-06-2014 19-06-2014 37785214 26 3030 11448.92 United Spirits Limited Relay B. V. 09-11-2012 10-04-2013 26-04-2013 48163670 33.14 1440 6935.5685 Ranbaxy Laboratories Ltd. Daiichi Sankyo Company Ltd. – 16-08-2008 04-09-2008 92519126 22.05 737 6818.6596 Glaxosmithkline Pharmaceuticals Ltd. Glaxosmithkline Pte Ltd. 16-12-2013 18-02-2014 05-03-2014 20609774 24.33 3100 6389.0299 Siemens Limited Siemens Aktiengesellschaft 31-01-2011 25-03-2011 13-04-2011 66829060 19.82 930 6215.1026 Mindtree Limited Larsen & Toubro Limited 18-03-2019 17-06-2019 28-06-2019 51325371 31 980 5029.8864 Data source: SEBI Compiled by BS Research Bureau