Ambuja Cements picks 56.74% in Sanghi Ind
The deal puts enterprise value of Hyd-based Sanghi Industries Ltd at Rs5,000cr; Adani group firm will also make an open offer to acquire another 26% from SIL’s shareholders at Rs114.22/share
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New Delhi Gautam Adani-owned Ambuja Cements Ltd on Thursday announced the acquisition of a majority stake in Sanghi Industries at an enterprise value of Rs5,000 crore, in a first major deal since Adani Group was rocked by allegations of financial misconduct by Hindenburg Research. Ambuja Cements, a part of Adani Cement Ltd (ACL), will buy a 56.74 per cent stake in Sanghi Industries Ltd (SIL) from its existing promoter group - Ravi Sanghi & family. The acquisition will be fully funded through internal accruals, said a statement from Ambuja Cements. Besides, it would make an offer to acquire another 26 per cent or 6.71 crore equity shares from SIL’s public shareholders.
“The open offer would be at a consideration of up to Rs114.22 per sale share,” it said.
Adani Group will spend Rs767.15 crore for acquiring 26 per cent share from open market. The company expects the acquisition to be completed within 3-4 months, however, it will be subject to approval from the Competition Commission of India (CCI). If the open offer is fully subscribed, Ambuja Cements will own 82.74 per cent in SIL, the cement maker, which also owns a captive port capacity at Sanghipuram in Kutch district of Gujarat.
Commenting on the development, Adani Group Chairman Gautam Adani said: “This landmark acquisition is a significant step forward in Ambuja Cements’ accelerating growth journey. By joining hands with SIL, Ambuja is poised to expand its market presence, strengthen its product portfolio, and reinforce its position as a leader in the construction materials sector. With this acquisition, Adani Group is well on course to achieve its target of 140 MTPA of cement manufacturing capacity by 2028 ahead of time.”
