Adani Group completes acquisition of Holcim stakes in Ambuja Cement, ACC for $6.4 bln | The Financial Express

Adani Group completes acquisition of Holcim stakes in Ambuja Cement, ACC for $6.4 bln

The transaction includes all of Holcim’s 63.11 per cent stake in Ambuja Cement, which owns a 50.05 per cent interest in ACC, as well as Holcim’s 4.48 per cent direct stake in ACC.

Adani Group completes acquisition of Holcim stakes in Ambuja Cement, ACC for $6.4 bln
Holcim has closed the sale of its business in India including Ambuja Cement and ACC to the Adani Group. Image: Bloomberg

Swiss firm Holcim has closed the sale of its business in India including Ambuja Cements and ACC to the Adani Group, for cash proceeds of $6.4 billion (about Rs 51,000 crore). The transaction includes all of Holcim’s 63.11 per cent stake in Ambuja Cements, which owns a 50.05 per cent interest in ACC, as well as Holcim’s 4.48 per cent direct stake in ACC. Adani also launched a Rs 31,000 crore open offer earlier last month for the acquisition of 26 per cent additional stakes from the public shareholders of Ambuja Cements and ACC, after its offer to buy Holcim’s stakes in the two firms. Adani Group had offered to buy 26 per cent of Ambuja Cements stake for Rs 385 per share and the same stake for Rs 2,300 per share of ACC. The open offer would take Adani’s total cost of acquisition to about Rs 82,000 crore at a 100% acceptance rate.

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According to an update by ICICI Securities and Deutsche Equities India, who are the joint managers to the offer, under the proposal, Adani Group intends to acquire up to 51.63 crore equity shares of Ambuja Cements or 26 per cent of its expanded share capital (total voting share capital) aggregating Rs 19,879.57 crore. And for ACC, it has offered to acquire up to 4.89 crore shares held by public shareholders, representing 26 per cent of the expanded share capital, for a total of Rs 11,259.97 crore. Currently, Ambuja Cements and ACC have a combined installed production capacity of 67.5 MTPA.

Further, “The Board of Ambuja Cements approved an infusion of Rs 20,000 crore into Ambuja by way of preferential allotment of warrants. This will equip Ambuja to capture the growth in the market,” an official statement said. The acquisitions will help Adani rise to the helm of India’s cement market.

Holcim said: This transaction will help the company to continue its acquisition strategy, building on recent investments of over CHF 5 billion in Solutions & Products, Holcim said in a separate statement earlier today. “This divestment is another step in our transformation to become the global leader in innovative and sustainable building solutions, strengthening our balance sheet and giving us the firepower to continue our acquisition strategy,” said Jan Jenisch, COE, Holcim.

Gautam Adani and his family’s net worth surged to $155.4 billion today, surpassing that of French businessman Bernard Arnault, according to the Forbes Real-Time Billionaires List. Last month, Adani had surpassed Bill Gates to become the world’s third-richest person.

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