Adani Cementation will merge with Ambuja Cements as part of a new scheme, while Adani Cement Industries will become a wholly-owned subsidiary of Ambuja Cements. Ambuja Cements, owned by Gautam Adani, said that its board of directors has approved a merger with Adani Cementation Ltd, an Adani Enterprises subsidiary.
“We wish to inform that the Board of Directors of Ambuja Cements Limited (Transferee Company or Company) in its meeting held today i.e., 27th June 2024, considered and approved the proposed Scheme of Amalgamation of Adani Cementation Limited (Transferor Company) with the Company and their respective shareholders (proposed Scheme),” the company said in a regulatory filing.
The business asserted that the planned strategy will consolidate cement capacity inside the group, resulting in synergistic benefits for all stakeholders. The merger will enable Ambuja Cements to absorb Adani Cementation’s business and enhance its manufacturing capacity, making operations more effective and seamless. “The merger would lead to greater value addition for both companies, which would raise value for shareholders,” it added. Ambuja Cements also noted that strategic locations near Dahej port and Amba River in Raigad would allow the company to source clinker by sea and rail to serve the high-growth markets of South Gujarat and Mumbai.
As part of the deal, Adani Enterprises will be allotted 87,00,000 equity shares of Ambuja Cements. The swap ratio will be 174 shares of Ambuja Cements for every 1 share of Adani Cementation, translating to 87 lakh shares of Ambuja Cements for 50,000 shares of Adani Cementation, the company stated. Currently, Adani Enterprises holds a 100% stake in Adani Cementation, which in turn holds a 100% stake in Adani Cement Industries.
The Adani Group had acquired Ambuja Cements in September 2022. Ambuja Cements holds a promoter stake in ACC Ltd. As of March, Ambuja Cements’ consolidated capacity stood at 77 MTPA.
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