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

Next Story
Infrastructure Transport

NHAI to Upgrade Tamil Nadu Highways

To reduce congestion on key national highways in Tamil Nadu, the National Highways Authority of India (NHAI) has planned capacity upgrades for at least eight highway stretches. The improvements will include bypasses, flyovers, and four-laning in Salem, Coimbatore, Tiruppur, Nilgiris, and Cuddalore. NHAI has invited tenders to appoint consultants for preparing detailed project reports (DPRs) on these expansions. The affected highways include NH-181, NH-81, NH-532, NH-85, and NH-136. Proposed Upgrades Across Highways - NH-181 (Coimbatore-Gundlupet Route): This stretch will see four bypasses an..

Next Story
Infrastructure Transport

Ludhiana-Bathinda Highway Revived as NHAI Invites Bids

The Ludhiana-Bathinda highway project, initially stalled due to land acquisition issues, has been revived as the National Highways Authority of India (NHAI) invites fresh bids to resume construction. The project, part of the Ludhiana-Ajmer Economic Corridor, is estimated to cost Rs 24.61 billion and will be executed in two phases. Package 1, covering 30.03 km, has a budget of Rs 9.06 billion, while Package 2, spanning 45.25 km, is set to cost Rs 15.55 billion. The NHAI had previously withdrawn the project due to unavailability of land. However, intervention from Union Minister for Road Trans..

Next Story
Infrastructure Urban

Dilip Buildcon Wins Rs 460M Arbitration

Infrastructure major Dilip Buildcon has secured an arbitration award of Rs 460 million against the National Highways Authority of India (NHAI) over delays and breaches during the execution of a highway project in Karnataka. The dispute pertains to the Rehabilitation and Upgradation of the Kerala Border to Kollegala Section of NH 212, awarded to Dilip Buildcon under an Engineering, Procurement, and Construction (EPC) agreement dated June 6, 2014. The project involved two-lane expansion with paved shoulders and four-lane development under the National Highways Development Project (NHDP) Phase IV..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?