The Adani family, which signed definitive deals to acquire Holcim Group’s stake in the latter’s two listed Indian entities, has made an open offer to buy 26% stake in the firms.
Under the proposal, Adani group intends to acquire up to 51.63 crore shares of Ambuja Cements or 26% of its expanded share capital (total voting share capital) for a total of Rs 19,879.57 crore. Further it has offered to acquire up to 4.89 crore public shares (or 26% of expanded share capital) for a total of Rs 11,259.97 crore, the update by ICICI Securities and Deutsche Equities India, who are the joint managers to the offer, said.
The open Offer is being made by Endeavour Trade and Investment, a special purpose vehicle, set up in Mauritius. Endeavour Trade and Investment is promoted by Acropolis Trade and Investment, which is controlled by certain members of the Adani family, it added.
The SPV has executed an agreement on Sunday to buy the entire shareholding of the offshore promoter, Holderind Investments, it said.
The open offer pricing is at a 7% premium to Ambuja and 9% to ACC Friday’s closing price. This entails additional investment of Rs 31,100 crore at 100% successful open offer, IDBI Capital said in a note.
The Adani Group does not currently have any exposure in cement and hence does not expect headwinds in Competition Commission of India (CCI) approvals, IDBI Capital said.
“After a successful open offer, Adani’s stake in Ambuja will increase to 89% and 81% in ACC. It would have to be seen if Adani Group reduces its stakes to 75% or delists the companies,” Emkay Global Financial Services said.
On Sunday, in its largest acquisition-ever Adani Group entered into a deal to buy Switzerland-based Holcim Group’s stake in its Indian entities, Ambuja Cements and ACC. Holcim, for about $10.5 billion, marking its foray into the cement sector. Holcim, through its subsidiaries, holds 63.19% stake in Ambuja Cements and 54.53% in ACC (of which 50.05% is held through Ambuja Cements).
The deal size includes the open offer prices also, Adani Group said on Sunday. The transaction is expected to be complete in the second half of this calendar year.