Adani Group is likely to launch an open offer next week for acquiring a 26% stake in Swiss-based firm Holcim’s Indian listed subsidiaries ACC and Ambuja Cements. If fully subscribed, Adani will pay nearly ₹31,000 crore under the open offer. Earlier this week, market regulator Sebi granted approval for the open offer.
Both Ambuja Cements and ACC have filed the letter of the open offer on stock exchanges.
As per the regulatory filing, a cash offer to acquire 4,89,56,419 fully paid-up equity shares having a face value of ₹10 each at a price of ₹2,300 per equity share representing a 26% stake in ACC.
While cash offer to acquire 51,63,52,655 equity shares at a face value of ₹2 each at ₹385 per equity share representing 26% is made for Ambuja Cement.
That said, the cash offer is valued at around ₹11,259.97 crore for ACC and ₹19,879.57 crore for Ambuja Cement.
As per a PTI report, the open offer will start from August 26 as against the earlier date of July 6. This will end on September 9, 2022.
Endeavour Trade and Investment has made the open offer. The company is promoted by Acropolis Trade and Investment and held by certain members of the Adani family.
ICICI Securities and Deutsche Equities India are the managers of the open offer.
In May this year, Adani entered into definitive agreements with Holcim to acquire the Switzerland-based company’s entire stake in two of India’s leading cement companies – Ambuja Cements and ACC.
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 value of Holcim’s stake and open offer consideration for Ambuja Cements and ACC is around $10.5 billion, which makes this the largest ever acquisition by Adani, and India’s largest ever M&A transaction in the infrastructure and materials space.
Currently, Ambuja Cements and ACC have a combined installed production capacity of ~70 MTPA. The two companies are among the strongest brands in India with immense depth of manufacturing and supply chain infrastructure, represented by their 23 cement plants, 14 grinding stations, 80 ready-mix concrete plants, and over 50,000 channel partners across India.
Further, Ambuja and ACC’s combined footprint includes 31 cement manufacturing sites and 78 ready-mix concrete plants with 10,700 people across India. Both Ambuja Cement and ACC are publicly listed companies on the Mumbai stock exchange. The transaction is subject to approval by local authorities and is expected to close in the second half of 2022.
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