Country for PR: United Kingdom
Contributor: PR Newswire Europe
Saturday, September 17 2022 - 00:42
AsiaNet
Adani becomes India's second largest cement player
AHMEDABAD, India, Sept. 16, 2022 /PRNewswire-AsiaNet/ --

   Completes acquisition of Ambuja Cements and ACC

    - Largest acquisition in India's Infrastructure and Materials space valued 
at USD 6.50 billion
    - Post the transaction, Adani will hold 63.15% in Ambuja Cements and 56.69% 
in ACC (of which 50.05% is held through Ambuja Cements)
    - The combined market capitalization of Ambuja Cements and ACC is USD 19 
billion as on date
    - With this acquisition, Adani is now India's second largest cement 
manufacturer (capacity 67.5 MTPA)
    - Enhanced corporate governance with 100% independent directors on Audit 
Committee and Nomination & Remuneration Committee
    - Two new Board committees – Corporate Responsibility Committee and Public 
Consumer Committee – comprising solely of independent directors, will drive ESG 
assurance and consumer-first approach

    The Adani Family, through Endeavour Trade and Investment Ltd ("BidCo"), a 
special purpose vehicle, has successfully completed the acquisition of Ambuja 
Cements Ltd and ACC Ltd. The transaction involved the acquisition of Holcim's 
stake in Ambuja and ACC along with an open offer in both entities as per SEBI 
Regulations.

    Logo: https://mma.prnewswire.com/media/1716106/Adani_Group_Logo.jpg

    The value of the Holcim stake and open offer consideration for Ambuja 
Cements and ACC is USD 6.50 billion, which makes this the largest ever 
acquisition by Adani, and also India's largest ever M&A transaction in the 
infrastructure and materials space. Post the transaction, Adani will hold 
63.15% in Ambuja Cements and 56.69% in ACC (of which 50.05% is held through 
Ambuja Cements).

    "What makes cement an exciting business is the headroom for growth in 
India, which exceeds that of every other country well beyond 2050," said Mr 
Gautam Adani, Chairman, Adani Group. "Cement is a game of economics dependent 
on energy costs, logistics and distribution costs, and the ability to leverage 
a digital platform to transform production as well as gain significant supply 
chain efficiencies. Each one of these capabilities is a core business for us 
and therefore provides our cement business a set of unmatched adjacencies. It 
is these adjacencies that eventually drive competitive economics. In addition, 
our position as one of the largest renewable energy companies in the world will 
help us manufacture premium quality green cement well in line with the 
principles of a circular economy. All of these dimensions put us on track to 
become the largest and most efficient manufacturer of cement by no later than 
2030."

    Currently, Ambuja Cements and ACC have a combined installed production 
capacity of 67.5 MTPA. The two companies are among the strongest brands in 
India with immense depth of manufacturing and supply chain infrastructure, 
represented by their 14 integrated units, 16 grinding units, 79 ready-mix 
concrete plants and over 78,000 channel partners across India.

    The Board of Ambuja Cements approved an infusion of INR 20,000 Cr into 
Ambuja by way of preferential allotment of warrants. This will equip Ambuja to 
capture the growth in the market. The actions will significantly accelerate 
value creation for all stakeholders, in line with the Adani Group's business 
philosophy.

    Both Ambuja Cements and ACC will benefit from synergies with the integrated 
Adani infrastructure platform, especially in the areas of raw material, 
renewable power and logistics, where Adani Portfolio companies have vast 
experience and deep expertise. Ambuja and ACC will also benefit from Adani's 
focus on ESG, Circular Economy and Capital Management Philosophy. The 
businesses will continue to be deeply aligned to UN Sustainability Development 
Goals with clear focus on SDG 6 (Clean Water and Sanitation), SDG 7 (Affordable 
and Clean Energy), SDG 11 (Sustainable Cities and Communities) and SDG 13 
(Climate Action).

    In line with the Adani Portfolio's governance philosophy, the board 
committees of both Ambuja Cements and ACC have been reconstituted. The Audit 
Committee and the Nomination & Remuneration Committee now comprise 100% 
independent directors. Further, two new committees have been constituted – the 
Corporate Responsibility Committee and the Public Consumer Committee – both 
comprising 100% independent directors to provide assurance to the board on ESG 
commitments and maximise consumer satisfaction. Also, a Commodity Price 
Committee has been constituted, comprising 50% independent directors, to 
strengthen risk management.

    The transaction was financed by facilities aggregating to USD 4.50 billion 
availed from 14 international banks. Barclays Bank PLC, Deutsche Bank AG and 
Standard Chartered Bank acted as Original Mandated Lead Arrangers and 
Bookrunners to the transaction. Barclays Bank PLC, DBS Bank, Deutsche Bank AG, 
MUFG Bank and Standard Chartered Bank acted as Mandated Lead Arranger and 
Bookrunners to the transaction. In addition, BNP Paribas, Citibank, Emirates 
NBD Bank, First Abu Dhabi Bank, ING Bank, Intesa Sanpaolo S.p.A, Mizuho Bank, 
Sumitomo Mitsui Banking Corporation and Qatar National Bank acted as Mandated 
Lead Arrangers for the transaction.

    Barclays Bank PLC and Deutsche Bank AG acted as M&A advisors to BidCo, with 
Standard Chartered Bank acting as the Structuring Advisor, and ICICI Securities 
and Deutsche Bank AG acted as merchant bankers to the open offer by BidCo for 
Ambuja Cements and ACC.

    Cyril Amarchand Mangaldas and Latham and Watkins LLP acted as M&A counsel 
to BidCo. Cyril Amarchand Mangaldas and Latham and Watkins LLP also acted as 
legal counsels to BidCo for the financing with Allen & Overy LLP and Talwar 
Thakore and Associates acting as legal counsels to the lenders. 

    About the Adani Portfolio

    Headquartered in Ahmedabad, India, the Adani Group is the largest and 
fastest-growing portfolio of diversified businesses in India with interests in 
Logistics (seaports, airports, logistics, shipping and rail), Resources, Power 
Generation and Distribution, Renewable Energy, Gas and Infrastructure, Agro 
(commodities, edible oil, food products, cold storage and grain silos), Real 
Estate, Public Transport Infrastructure, Consumer Finance and Defence, and 
other sectors. Adani owes its success and leadership position to its core 
philosophy of 'Nation Building' and 'Growth with Goodness' – a guiding 
principle for sustainable growth. The Group is committed to protecting the 
environment and improving communities through its CSR programmes based on the 
principles of sustainability, diversity and shared values.

    Further information at www.adani.com.

    Logo: https://mma.prnewswire.com/media/1716106/Adani_Group_Logo.jpg

    Source: Adani Group
Translations

Japanese