Gautam Adani-owned Ambuja Cements announced that its board has approved the merger with Adani Cementation Ltd, a subsidiary of Adani Enterprises. As part of the scheme, Adani Cementation will be merged with Ambuja Cements, while Adani Cement Industries will become a wholly-owned subsidiary of Ambuja Cements.
“We wish to inform that the Board of Directors of Ambuja Cements Limited (Transferee Company or Company) in its meeting held today i.e. 27th June 2024 considered and approved the proposed Scheme of Amalgamation of Adani Cementation Limited (Transferor Company) with the Company and their respective shareholders (proposed Scheme),” the company said in a regulatory filing.
The proposed scheme, the company said, will consolidate cement capacity within the group to bring synergistic benefits for all stakeholders. The proposed scheme will enable Ambuja Cements to absorb the business of the Adani Cementation and enhance its manufacturing capacity to carry out the manufacturing operation more effectively and seamlessly. “The amalgamation would lead to enhanced value addition for both the aforesaid companies and consequently the value for shareholders will increase,” it said. Ambuja Cements further added that the strategic locations (near Dahej port & Amba River – Raigad) will enable the company to source clinker by Sea as well as Rail to serve the high growth market of South Gujarat and Mumbai.
Adani Enterprises will be allotted 87,00,000 equity shares of Ambuja Cements. The swap ratio will be 174 shares of Ambuja Cements for every 1 share of Adani Cementation, which translates to 87 lakh shares of Ambuja Cements for 50,000 shares of Adani Cementation, the company said.Currently, Adani Enterprises holds a 100 per cent stake in Adani Cementation, which in turn holds a 100 per cent stake in Adani Cement Industries.
The Adani group had acquired Ambuja Cements in September 2022. Ambuja Cements, in turn, holds a promoter stake in ACC Ltd. As of March, Ambuja Cements’ consolidated capacity was at 77 MTPA.