MUMBAI: The open offer for Ambuja Cements and ACC by the Adani Family-owned Endeavour Trade and Investment Ltd will run from July 6-19, the two companies informed the stock exchanges on Thursday. The combined size of the open offers is at Rs 31,139 crore, higher than Unilever’s Rs 29,220 crore open offer for HUL shares in 2013, potentially making it the largest deal in corporate India.
Endeavour Trade will invest Rs 19,880 crore to buy 26% or 51.63 crore shares of Ambuja Cements from the public at Rs 385 apiece and Rs 11,260 crore to buy 26% (4.89 crore shares) of ACC from the public. Post a successful open offer, Adani’s stake in Ambuja would rise to 89.11% and in ACC to 80.53%.
As per Sebi’s minimum public shareholding norms, the promoter will have an option to cut its stakes to 75% each or delist the companies. The share of Ambuja Cements and ACC ended up 1% each at Rs 365.55 and Rs 2,203.25, respectively, on the NSE on Thursday. The open offer is at a premium of 5.3% for Ambuja Cements and 4.4% for ACC based on Thursday’s closing prices.
Swiss-based Holcim signed a binding agreement for the Adani Group to acquire its business in India, comprising a 63.11% stake in Ambuja Cement, which owns a 50.05% interest in ACC, as well as its 4.48% direct stake in ACC for Rs 50,200 crore. The total deal size is Rs 81,339 crore including the open offer.
An open offer is triggered if an acquirer holds 25% stake or more of a target company.
Post the transaction, Adani Group will become the second-largest cement maker in India with an operational capacity of 68 mn tonnes per annum after UltraTech’s 115 mn tpa, as per IDBI Capital.
In a concall with investors, Holcim indicated that the deal is subject to CCI (Competition Commission Of India) approval and is confident that the deal will be completed in the early part of H2FY23. This deal will not entail any capital gain tax on the part of the Holcim.
Adani Group-Holcim deal details
Mumbai: Swiss-based Holcim signed a binding agreement for the Adani Group to acquire its business in India, comprising 63.11% stake in Ambuja Cement, which owns a 50.05% interest in ACC, as well as its 4.48% direct stake in ACC for Rs 50,200 crore. The total deal size is Rs 81,339 crore including the open offer