Adani's open offer for Ambuja Cement, ACC gets dull response
PremiumFor Ambuja Cements Ltd, the Adani Group had opened an offer at ₹385 per share in May, while for ACC, it made an open offer at ₹2,300 per share.
An open offer worth ₹31,000 crore by Adani Group to acquire 26% additional stakes in Swiss firm Holcim's two Indian listed entities---ACC Ltd and Ambuja Cements---closed on Friday amid dull response from public shareholders. The offer for both organizations was opened on August 26 this year.
Only 13.5% or 6.97 lakh shares of Ambuja Cements have been tendered in the escrow Demat account as compared to the original offer for 51.63 crore shares from the public shareholders, according to the latest regulatory updates as quoted by news agency PTI.
For Ambuja Cements Ltd, the Adani Group had opened an offer at ₹385 per share in May, while for ACC, it made an open offer at ₹2,300 per share. These offers came after Adani's deal to acquire a controlling stake in Holcim's businesses in India for USD 10.5 billion. If fully subscribed, the open offer was estimated at over ₹31,000 crore.
The shares of ACC Ltd settled at ₹2,365 on the BSE--2.82% higher than the offer price, while Ambuja Cements shares settled at ₹453.90--17.89% higher, when the open offer ended on Friday.
On the last day of the open offer, ACC had reported a spurt in volume by more than 2.13 times, while Ambuja Cements traded at a new 52-week high of ₹484.70 per share.
The letter for the open offer was launched by the Adani Group's Mauritius-based firm Endeavour Trade and Investment, which is promoted by Acropolis Trade and Investment Ltd.
The Adani Group made an announcement about the deal to acquire a controlling stake in Holcim Ltd's businesses in India for USD 10.5 billion (around ₹83,920 crore current value) on May 15, marking the ports-to-energy conglomerate's entry into the cement sector, as per PTI reports.
About 63% of Ambuja Cements will be acquired by Adani Group along with its related assets. Currently, Ambuja Cements and ACC have a combined installed production capacity of 70 million tonnes 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.
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(With PTI inputs)
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