Ambuja Cements acquires Sanghi Inds for Rs 5,000 cr

New Delhi, August 3

Gautam Adani-owned Ambuja Cements Ltd on Thursday announced the acquisition of a majority stake in Sanghi Industries at an enterprise value of Rs 5,000 crore, in a first major deal since the 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% 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% or 6.71 crore equity shares from SIL’s public shareholders.

“The open offer would be at a consideration of up to Rs 114.22 per sale share,” it said. Adani Group will spend Rs 767.15 crore for acquiring 26% 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.

If the open offer is fully subscribed, Ambuja Cements will own 82.74% in SIL, the cement maker which also owns a captive port capacity at Sanghipuram in Kutch district of Gujarat.

Adani Group plans to make investments to expand the captive port capacity of Sanghipuram to handle vessels of size 8,000 DWT (deadweight tonnage), said Adani Ports and Special Economic Zone CEO Karan Adani. Adani Group chairman Gautam Adani said: “This landmark acquisition is a significant step forward in Ambuja Cements’ accelerating growth journey.” — PTI

Deal dynamics

• Ambuja Cements will buy a 56.74% stake in Sanghi Industries Ltd from its existing promoter group — Ravi Sanghi & family
• The acquisition will be fully funded through internal accruals
• Besides, it would make an offer to acquire another 26% or 6.71 crore equity shares from SIL’s public shareholders