Adani Group’s subsidiary, Renew Exim DMCC, has entered into a definitive agreement to acquire a 46.64% equity stake in ITD Cementation India Ltd from Italian-Thai Development Public Company Ltd (ITD) for approximately Rs 3,204 crore, priced at Rs 400 per share. This acquisition is expected to enhance Adani’s civil engineering capabilities, particularly in sectors such as airports, highways, and metro infrastructure.
In addition to the stake purchase, Renew Exim has announced an open offer to acquire an additional 26% stake in ITD Cementation from public shareholders at a price of Rs 571.68 per share. If fully subscribed, this open offer would amount to Rs 2,553 crore, representing a 6% premium over ITD Cementation’s last closing price of Rs 539.
ITD Cementation’s share price has risen by over 180% in the last one year with market capitalisation of the company crossing Rs 9260 crore, while market speculation about Adani Group’s interest in acquiring the stake had already triggered a leap of 20% in ITD Cementation shares last month.
The deal will see Renew Exim get controlling stake in ITD Cementation and thereby see ITD cease as its promoter. The board will get reconstituted with Adani-nominated directors, even as representatives of ITD would quit the board. The deal is subject to large deal regulations under the SEBI meant for companies and statutory approvals, including specific non-compete clauses and stand-still agreements.
Do you have a news tip for Lakshmishree reporters? Please email us at media@lakshmishree.com
Source: Moneycontrol
News Desk
