Ambuja Cements Ltd., owned by the Adani Group, has announced the acquisition of a 46.8% stake in Orient Cement Ltd. The deal values Orient Cement at ₹8,100 crore. This acquisition will increase Ambuja Cements’ production capacity by 16.6 million tonnes per year. The company mentioned in a stock exchange filing that the acquisition will be fully funded through internal resources.
Ambuja Cements plans to buy the promoter group’s 37.9% stake in Orient Cement for ₹395.40 per share, representing a 12% premium over the current share price.
Additionally, Ambuja will make an open offer to acquire 26% of the remaining public shares at the same price of ₹395.40 per share.
The company is also acquiring 8.90% of Orient Cement’s existing share capital from certain public shareholders. The entire process is expected to be completed within 3-4 months.
Ambuja Cements announced that acquiring the cement division of CK Birla Group will enhance its existing operations. This move will help reduce transportation distances and costs, ultimately boosting the company’s market share in key areas.
The deal includes purchasing operational and ready-to-implement capacity at $58 per tonne, which is more economical compared to the cost of setting up a new facility, estimated at $110-120 per tonne. Currently, Orient Cement has a capacity of 8.5 million tonnes per year, and this acquisition will support Ambuja Cements’ goal of reaching over 100 million tonnes of capacity by 2025 and 140 million tonnes by 2028. The acquisition is expected to take three to four months and requires approval from the competition regulatory authority.
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