InvestorQ : How is the deal between Ambuja Cements and Adani going to be structured?
vaishnavi mhatre made post

How is the deal between Ambuja Cements and Adani going to be structured?

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vidhya Laxmi answered.
2 months ago
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Over the weekend, the deal to buy out Holcim’s stake in Gujarat Ambuja was sealed with Adani group the winner as was already anticipated. The deal (including the open offer to the shareholders of Ambuja and ACC) will cost the Adani group a total sum of $10.5 billion, or approximately Rs.81,300 crore. This deal will create the second largest cement producer in India after Ultratech. Now Adani will have combined cement installed capacity of 71 MTPA.

Adani group will pay $6.4 billion to Holcim for their 63.2% stake in Ambuja Cements plus their 4.48 % stake in ACC. This also gives Adani indirect control over the 50.05% stake that Ambuja already holds in ACC. Post this deal, Adani will spend another $4.1 billion to make an open offer to non-promoter shareholders of Ambuja and ACC to acquire 26% of these companies. At the end of the deal, Adani will have management control of ACC and Ambuja.

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