The Adani family has made an open offer to acquire a 26% stake each in Holcim’s two Indian listed cement makers – Ambuja Cements and ACC.
Endeavour Trade and Investment Ltd, a company incorporated in Mauritius by the Adani group, has made the open offer at a price of ₹385 per share for Ambuja Cements and ₹2,300 per share for ACC Ltd.
For Ambuja Cements, the Adani family has made an open offer to its public shareholders to acquire up to 51.63 crore equity shares, constituting 26% of the expanded share capital, aggregating to a total consideration of ₹19,879.57 crore.
As for ACC, the Adani-owned entity has offered to acquire up to 4.89 crore shares held by public shareholders, representing 26% of the expanded share capital, aggregating to a total consideration of ₹11,259.97 crore.
This open offer has been triggered after the execution of the share purchase agreement between the Adani family and Holcim to buy a majority stake in the Indian cement business of the Swiss giant for an aggregate consideration of U.S. dollar equivalent of ₹50,181.04 crore.
Endeavour Trade and Investment, an offshore special purpose vehicle, is promoted by Acropolis Trade and Investment Ltd. The ultimate beneficial ownership of Acropolis Trade and Investment Ltd is held by certain members of the Adani family.
The public announcement was jointly issued by ICICI Securities and Deutsche Equities India.
The Adani family on Sunday entered into definitive agreements for the acquisition of Holcim's entire stake in Ambuja Cements and ACC for $6.4 billion.
Holcim, through its subsidiaries, holds 63.19% in Ambuja Cements and 54.53% in ACC — of which 50.05% is held through Ambuja Cements.
The value for the Holcim stake and open offer consideration for Ambuja Cements and ACC is around $10.5 billion, making this the largest ever acquisition by Adani.
India's cement consumption is at just 242 kg per capita, as compared to the global average of 525 kg per capita, highlighting significant potential for the growth of the cement sector in India.
Ambuja Cements and ACC currently have a combined installed production capacity of around 70 million tonnes per annum (MTPA). The two companies have 23 cement plants, 14 grinding stations, 80 ready-mix concrete plants and over 50,000 channel partners across India.
The deal will make the Adani group India’s second-largest cement producer after Ultratech Cement, which is owned by the Aditya Birla Group.
On Monday, Holcim, the world's largest cement maker, said that the sale of its Indian businesses doesn't entail any tax liability.
"We have sold the company with no indemnification and no warranties. It's a straightforward sale of the shares, with no further indemnification from our side," Jan Jenisch, chief executive officer of Holcim, said in an analyst call.
