Adani unveils ₹31,000 crore open offer for ACC, Ambuja Cements

Adani Group on Friday launched its ₹31,000-crore open offer to acquire 26% additional stake from the public shareholders of Swiss firm Holcim’s two Indian listed entities ACC Ltd. and Ambuja Cements.

In May this year, the Adani Group had announced that it had clinched a deal to acquire a controlling stake in Holcim Ltd’s businesses in India for $10.5 billion.

Markets regulator SEBI granted approval for the open offer last week. The open offer is estimated at over ₹31,000 crore if fully subscribed.

In two separate regulatory filings, Ambuja Cements and ACC have submitted their letter of offers for the open offer, launched by the Adani family group’s Mauritius-based firm Endeavour Trade and Investment.

As per the revised schedule submitted by ICICI Securities and Deutsche Equities India, managers to the open offer, the tendering of shares opens from August 26 and will end on September 9, 2022.

In May, the Adani Group had made an open offer at ₹385 per share for Ambuja Cements and ₹2,300 per share for ACC.

For Ambuja Cements, the group had made an open offer to the public shareholders to acquire up to 51.63 crore equity shares, representing 26% of the expanded share capital, aggregating to ₹19,879.57 crore.

For ACC Ltd., the group had offered to acquire up to 4.89 crore shares held by public shareholders, representing 26% of the expanded share capital, aggregating to ₹11,259.97 crore.

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The open offer has been triggered following the execution of the share purchase agreement between the Adani Group and Holcim to acquire controlling stake in the latter’s businesses in India.

Endeavour Trade and Investment is promoted by Acropolis Trade and Investment Ltd., which is held by certain members of the Adani family.

On May 15, the Adani Group had announced a deal to acquire a controlling stake in Holcim Ltd.’s businesses in India for $10.5 billion (around ₹83,920 crore current value), marking the ports-to-energy conglomerate’s entry into the cement sector.

Adani Group will acquire 63.1% of Ambuja Cements along with related assets. Ambuja’s local subsidiaries include ACC Ltd., which is also publicly traded.

Swiss building material major Holcim, through its subsidiaries, holds 63.19% in Ambuja Cements and 54.53% in ACC (of which 50.05% is held through Ambuja Cements).

Ambuja Cements and ACC currently have a combined installed production capacity of 70 million tonne per annum. The two companies together have 23 cement plants, 14 grinding stations, 80 ready-mix concrete plants and over 50,000 channel partners across India.