Ambuja Cements to acquire Sanghi Industries at enterprise value of Rs 5,000 crore

4 Aug 2023 , 12:24 PM

Ambuja Cements has entered into an agreement to acquire Sanghi Industries for enterprise value of Rs 5,000 crore after sale negotiations progressed over the previous week and the Adani Group business presented improved conditions and a faster transaction closing.

It was earlier reported that the Adani Group’s Ambuja Cements-ACC and JK Lakshmi Cement were the frontrunners in the bid to buy the Ahmedabad-based cement producer.

Ambuja Cements announced that it would pick up 56.74% of Sanghi Industries from its promoter group, Ravi Sanghi, and family. Internal accruals will cover the entire cost of the transaction.

The acquisition will necessitate a regulatory open offer to purchase an additional 26% interest from public shareholders. Ambuja Cements will spend around Rs 767 crore on the open offer at per share value of Rs 114.22, representing a 14% premium to the stock’s closing price on the BSE on Wednesday of slightly over Rs 100.

Following this acquisition, Ambuja Cement will be well placed to increase its market reach, develop its product range, and reinforce its position as a leader in the construction materials sector by partnering with Sanghi Industries Ltd.

At around 12.13 PM, Ambuja Cements was trading 0.36% higher at Rs 476.05, against the previous close of Rs 474.35 on NSE. The counter touched an intraday high of Rs 477.50.

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