Adani Group announces merger, ownership restructuring for its cement assets
Ambuja cements (Photo: Bloomberg)
Adani Group on Thursday announced a merger and ownership restructuring for its cement assets housed under Ambuja Cements and Adani Enterprises. As part of the scheme, Adani Cementation will be merged with Ambuja, while Adani Cement Industries will become a wholly-owned subsidiary of Ambuja Cements.
Ambuja Cements will offer a share consideration to Adani Enterprises in lieu of the assets. At present, Adani Enterprises holds a 100 per cent stake in Adani Cementation, which in turn holds a 100 per cent stake in Adani Cement Industries.
“Ambuja will issue its shares as consideration to Adani Enterprises Ltd. under the proposed transaction,” the company said in its statement. The swap ratio, the company said, will be 174 shares of Ambuja Cements for every one share of Adani Cementation, which translates to 87 lakh shares of Ambuja Cements for 50,000 shares of Adani Cementation. On Thursday’s closing, Ambuja Cement was trading at Rs 660.55 per piece on the stock exchanges.
In terms of assets, the company presentation said, Adani Cementation holds an under-development 2.5 million tonne per annum (MTPA) grinding unit in Raigad, Maharashtra, along with a captive jetty and limestone reserves. Adani Cement Industries holds a 1.3 MTPA grinding capacity in Dahej, Gujarat, and an expansion plan of 1.20 MTPA.
On the rationale for the proposed merger, Ambuja Cements said the proposed scheme will consolidate cement capacity within the group to bring synergistic benefits for all stakeholders.
Adani Group acquired control of Ambuja Cements in September 2022 from the former promoters Holcim group. Ambuja Cements, in turn, holds a promoter stake in ACC Ltd. Ambuja Cements and ACC, combined, are expected to close the current financial year with a 96-100 MTPA capacity, through a mix of acquisitions and organic expansion. As of March, Ambuja’s consolidated capacity was at 77 MTPA.
First Published: Jun 27 2024 | 8:10 PM IST