Ambuja Cements Ltd has announced its decision to acquire a 37.9% stake in Orient Cement from the company’s promoters, at a price of Rs 395.4 per share. The deal is valued at an enterprise value of Rs 8,100 crore and will be funded through cash. This acquisition aligns with Ambuja Cements’ strategy to expand its market presence and strengthen its portfolio in the cement industry.
Post-acquisition of promoter stake, Ambuja Cements will also make a mandatory open offer to collect an additional 26% from public shareholders of Orient Cement, according to the substantial acquisition of shares regulations of SEBI. The open offer is intended to afford an opportunity to public shareholders to offer their shares at the offer price specified.
With a strong presence in central and southern India, Orient Cement forms a part of CK Birla Group, with considerable market share in these regions. The acquisition is more likely to strengthen Ambuja Cements’ presence in these key markets besides adding to its production capacity.
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Source: Moneycontrol
News Desk
