News

Adani's Ambuja Cement to Acquire 46.8% Stake in Orient Cement for Rs 8,100 Crore.

Banking & Finance | Dated: 05 Nov 2024

On 22nd October 2024, Ambuja Cements Limited (ACL), a leading cement company in India and part of the Adani Group, announced the signing of a binding agreement to acquire a 46.8% stake in Orient Cement Limited (OCL), owned by C.K. Birla Group, for an equity value of Rs 8,100 crore. The acquisition will be fully funded through internal accruals.

🎯 Key Highlights:

- This marks Ambuja Cement's 4th acquisition since its promoter change and the 3rd acquisition of the ongoing Financial Year 2024-25 (FY25).

💡 Other Important Facts:

(i) ACL will make an open offer at Rs 395.40 per share to the public shareholders of OCL in accordance with the provisions of the Substantial Acquisition of Shares and Takeovers (SAST) regulations.
(ii) The acquisition will take place in two phases: in the first phase, ACL will acquire a 37.9% stake from OCL’s promoters along with an additional 8.9% from select public shareholders. Following this, ACL intends to launch an open offer to acquire 26% of OCL’s expanded share capital at the same per-share price.
(iii) Currently, OCL has 5.6 MTPA clinker capacity and 8.5 MTPA cement capacity, and has received statutory clearance to increase clinker capacity by another 6.0 MTPA and cement capacity by another 8.1 MTPA.

📚 Test Your Knowledge:

Which company, owned by the Adani Group, is recently acquiring a 46.8% stake in Orient Cement?

Correct Answer: Ambuja Cement

🚀 Quick Recap:

About Ambuja Cements Limited (ACL)

Non-Executive Chairman- Gautam Adani
Headquarter : Mumbai