+
Adani-Holcim throws open offers for Ambuja, ACC of Rs 30k cr
Cement

Adani-Holcim throws open offers for Ambuja, ACC of Rs 30k cr

The open offers for Ambuja Cements and ACC Cement shareholders will begin on 6 July and close on 19 July. With an investment of Rs 31,139 crore, these two open offers might constitute the biggest ever open offer in India.

The open offer was made by a Mauritius based company owned by the Adani Group after acquiring a 63% stake in Ambuja Cement and 4.5% in ACC Cement from Holcim for $6.5 billion. Ambuja Cement owns a 50% stake in ACC. The entire acquisition will cost the Adani around Rs 81,000 crore.

Adani's open offers would pip Unilever's open offer in 2013. Unilever had announced a Rs 29,220 crore open offer to acquire 487 million shares of Hindustan Unilever, to increase its stake by about 22%.

Endeavour Trade and Investment will buy up to 516 million shares, with 26% of the share capital of Ambuja Cement, at Rs 385 per share, totalling Rs 19,879 crore.

Adani had offered to buy a 26% stake of ACC at Rs 2,300 per share for Rs 11,259 crore.

The transactions will be subject to getting approvals from various regulators, including the Securities and Exchange Board of India (SEBI) and the Competition Commission of India (CCI).

Adani has opened an escrow account with Barclays Bank in Mumbai and made a cash deposit to fund both offers.

Currently, Ambuja and ACC have a combined installed production capacity of 70 million tonnes per annum (mtpa), including 23 cement plants, 14 grinding stations, 80 ready-mix concrete plants, and over 50,000 channel partners pan India.

After the acquisition, Adani will become the second-biggest cement maker in India after Ultratech Cement.

Image Source

Also read: ACC-Ambuja: Know about the cement industry's most anticipated bidding

The open offers for Ambuja Cements and ACC Cement shareholders will begin on 6 July and close on 19 July. With an investment of Rs 31,139 crore, these two open offers might constitute the biggest ever open offer in India. The open offer was made by a Mauritius based company owned by the Adani Group after acquiring a 63% stake in Ambuja Cement and 4.5% in ACC Cement from Holcim for $6.5 billion. Ambuja Cement owns a 50% stake in ACC. The entire acquisition will cost the Adani around Rs 81,000 crore. Adani's open offers would pip Unilever's open offer in 2013. Unilever had announced a Rs 29,220 crore open offer to acquire 487 million shares of Hindustan Unilever, to increase its stake by about 22%. Endeavour Trade and Investment will buy up to 516 million shares, with 26% of the share capital of Ambuja Cement, at Rs 385 per share, totalling Rs 19,879 crore. Adani had offered to buy a 26% stake of ACC at Rs 2,300 per share for Rs 11,259 crore. The transactions will be subject to getting approvals from various regulators, including the Securities and Exchange Board of India (SEBI) and the Competition Commission of India (CCI). Adani has opened an escrow account with Barclays Bank in Mumbai and made a cash deposit to fund both offers. Currently, Ambuja and ACC have a combined installed production capacity of 70 million tonnes per annum (mtpa), including 23 cement plants, 14 grinding stations, 80 ready-mix concrete plants, and over 50,000 channel partners pan India. After the acquisition, Adani will become the second-biggest cement maker in India after Ultratech Cement. Image Source Also read: ACC-Ambuja: Know about the cement industry's most anticipated bidding

Related Stories

Gold Stories

Next Story
Infrastructure Urban

Swastika Infra Wins Rs. 6.16 bn MSEDCL Order

Swastika Infra has secured a Letter of Award worth approximately Rs. 6.16 bn from Maharashtra State Electricity Distribution Company (MSEDCL) for distribution infrastructure and system-strengthening works in Maharashtra’s Bhandup Zone. The order covers a range of power transmission and distribution activities and is scheduled for completion within 24 months. The project involves developing new substations, high-tension and low-tension lines, and distribution transformers. It also includes the augmentation of existing infrastructure, underground cabling and renovation works across the designa..

Next Story
Infrastructure Urban

TNPDCL Floats Tenders for 17.7 mn Smart Meters

Tamil Nadu Power Distribution Corporation (TNPDCL) has floated e-tenders in seven packages for installing 17.7 mn smart meters across municipal corporation areas under the Centre’s Revamped Distribution Sector Scheme (RDSS). The tenders seek Advanced Metering Infrastructure Service Providers (AMISPs) under the Total Expenditure (TOTEX) model. The meters will cover all low-tension (LT) consumers except government buildings, agricultural connections and hut services. The Chennai region has been divided into two packages, while the remaining 23 municipal corporations have been grouped into five..

Next Story
Infrastructure Urban

Sabarmati Station Redevelopment Reaches 85 Per Cent Completion

The redevelopment of Sabarmati Railway Station in Ahmedabad is around 85 per cent complete, with the Rs. 3.35 bn project intended to transform it into a multimodal transport hub connected to the metro network and the high-speed rail station. Western Railway is implementing the project to improve passenger movement, accessibility and facilities. The redeveloped station will feature an integrated smart-building system with Supervisory Control and Data Acquisition and a Building Management System. It will also include CCTV surveillance, public address systems, access control, IT networking and a ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code