The Adani family, which has signed specific agreements to acquire the Holcim Group’s stake in the latter two listed Indian entities, has made an open offer to buy a 26% stake in the companies.
The Adani Group, led by billionaire Gautam Adani, has offered Rs 385 per share for Ambuja Cement and Rs 2,300 per share for ACC, according to two separate regulatory updates.
Under the proposal, Adani Group wants to acquire 51.63 crore shares of Ambuja Cement or 26% of its expanded share capital (total voting share capital) for a total of Rs 19,879.57 crore. It also offered to acquire 4.89 crore public shares (or 26% of the increased share capital) for a total of Rs 11,259.97 crore, said ICICI Securities & Deutsche Equities India Update, who is the joint manager of the offer.
The open offer is being made by Endeavor Trade and Investment, a special purpose vehicle based in Mauritius. Endeavor Trade and Investment is promoted by Acropolis Trade and Investment, which is controlled by certain members of the Adani family, it added.
SPV on Sunday executed an agreement to buy full shares of offshore promoter Holderind Investments, it said.
The open offer price is 7% premium to Ambuzar and 9% off ACC Friday closing price. This requires an additional investment of Rs 31,100 crore in a 100% successful open offer, IDBI Capital said in a note.
Adani Group currently has no exposure to cement and therefore does not expect headwind approval from the Competition Commission of India (CCI), IDBI Capital said.
“After a successful open offer, Adani’s stake in Ambuja will increase by 89% and 81% in ACC. It remains to be seen whether Adani Group will reduce its stake to 75% or delist the companies, “said MK Global Financial Services.
On Sunday, Adani Group, in its largest acquisition, entered into an agreement to buy shares in Switzerland-based Holcim Group’s Indian company, Ambuja Cements and ACC. Holcim, about .5 10.5 billion, has marked its entry into the cement sector. Holcim, through its affiliates, owns 63.19% in Ambuja Cement and 54.53% in ACC (of which 50.05% is through Ambuja Cement).
The price of the open offer in the form of a deal is also included, Adani Group said on Sunday. The transaction is expected to be completed in the second half of this calendar year.