Adani’s open offer for Ambuja Cement, ACC gets sluggish response

As per the latest regulatory update quoted by news agency PTI, only 13.5% or 6.97 lakh shares of Ambuja Cements in the escrow demat account have been tendered against the original offer of 51.63 crore shares from public shareholders.

For Ambuja Cements Limited, Adani Group had opened a proposal 385 per share in May, while for ACC, it made an open offer at 2,300 per share. The offer comes after Adani’s deal to acquire a controlling stake in Holcim’s business in India for $10.5 billion. If fully subscribed, the open offer was estimated to be higher 31,000 crores.

ACC Ltd shares closed on 2,365 on BSE – 2.82% above the offer price, while Ambuja Cements shares . closed on 453.90–17.89% higher than when the open offer ended on Friday.

On the last day of the open offer, ACC had registered a rise of over 2.13 times in volumes, while Ambuja Cements traded at a new 52-week high. 484.70 per share.

The letter for the open offer was launched by Adani Group’s Mauritius-based firm Endeavor Trade and Investment, which is promoted by Acropolis Trade and Investment Ltd.

Adani Group announced a deal to acquire a controlling stake in Holcim Limited’s businesses in India for USD 10.5 billion (approximately). 83,920 crore (current value) on May 15, marks the port-to-energy group’s entry into the cement sector, as reported by PTI.

About 63% of Ambuja Cements will be acquired by the Adani Group along with its associated assets. At present, the combined installed production capacity of Ambuja Cements and ACC is 70 million tonnes per annum. Both the companies have 23 cement plants, 14 grinding stations, 80 ready-mix concrete plants and more than 50,000 channel partners across India.

(with PTI inputs)

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