Adani-Holcim deal: Open offers for Ambuja Cements and ACC from July 6

The open offers for the shareholders of Ambuja Cements and ACC will begin from July 6 and close on July 19, as per a tentative schedule published by the Adani family today. With an investment of $4 billion (Rs 31,139 crore), together these two open offers might constitute the biggest open offer in corporate Indian history.

The mandatory open offer for the companies was made by a Mauritius based company owned by the Adani family after they acquired a 63 per cent stake in Ambuja and 4.5 per cent in ACC from Swiss cement major, Holcim for $6.5 billion. Ambuja owns a 50 per cent stake in ACC. The entire acquisition will cost the Adani family around $10.5 billion (Rs 81,000 crore). The entire open offer exercise will be over by the first week of August, as per notices issued by both companies.

On a combined basis, the Adani open offers would pip Unilever open offer when in 2013, Unilever had announced a Rs 29,220 crore open offer to acquire 487 million shares of Hindustan Unilever, to raise its stake by about 22 per cent.

According to the notice, Endeavour Trade and Investment, a Mauritius-based entity owned by the Adani family, will buy up to 516 million shares, representing 26 per cent of the share capital of Ambuja Cements, at a price of Rs 385 per share, aggregating to a total consideration of Rs 19,879 crore. Similarly, the Adani family offered to buy 26 per cent of ACC at a price of Rs 2,300 per share for Rs 11,259 crore (assuming full acceptance).

The independent directors of both companies will be publishing their recommendation by July 4th to the shareholders of both companies. The transactions will be subject to getting various regulators approvals including the Sebi and the Competition Commission of India (CCI).

The Adani family has opened an escrow account with Barclays Bank in Mumbai and made a cash deposit to fund both offers.

Ambuja and ACC currently have a combined installed production capacity of 70 million tonnes per annum. The two companies together have 23 cement plants, 14 grinding stations, 80 ready-mix concrete plants, and over 50,000 channel partners across India. The acquisition will make the Adani family the second biggest cement maker in India after Ultratech.

Target Company	Acquirer	Date of Public Announcement	Offer Opening Date	OFFER CLOSING DATE	OFFER SIZE ( Shrs)	% of equity capital	Offer Price ( Rs)	Value (Rs crore)
Hindustan Unilever Ltd.	Unilever Plc	30-04-2013	21-06-2013	04-07-2013	487004772	22.52	600	29220.286
Vedanta Limited	Vedanta Resources Limited	09-01-2021	23-03-2021	07-04-2021	651000000	17.51	235	15298.5
Cairn India Limited	Tsehl & Vedanta Resources Plc	17-08-2010	11-04-2011	30-04-2011	383985368	20	355	13631.481
Idbi Bank Limited	Life Insurance Corporation Of India	05-10-2018	26-12-2018	08-01-2019	2041512929	26	61.73	12602.259
United Spirits Ltd.	Relay, A Pvt Ltd.	15-04-2014	06-06-2014	19-06-2014	37785214	26	3030	11448.92
United Spirits Limited	Relay B. V.	09-11-2012	10-04-2013	26-04-2013	48163670	33.14	1440	6935.5685
Ranbaxy Laboratories Ltd.	Daiichi Sankyo Company Ltd.	-	16-08-2008	04-09-2008	92519126	22.05	737	6818.6596
Glaxosmithkline Pharmaceuticals Ltd.	Glaxosmithkline Pte Ltd.	16-12-2013	18-02-2014	05-03-2014	20609774	24.33	3100	6389.0299
Siemens Limited	Siemens Aktiengesellschaft	31-01-2011	25-03-2011	13-04-2011	66829060	19.82	930	6215.1026
Mindtree Limited	Larsen & Toubro Limited	18-03-2019	17-06-2019	28-06-2019	51325371	31	980	5029.8864

Data source: SEBI
Compiled by BS Research Bureau