The company, led by Gautam Adani, Asia’s richest person, is preparing to bid to buy 26% of Ambuja Cements Ltd for Rs 385 per share and the same holding in ACC Ltd. For Rs 2,300 per share after obtaining approval from the securities. and the Exchange Board of India, according to people familiar with the situation and did not want to be identified as the information is not public.
Adani Group and SEBI representatives did not immediately respond when asked about the open bid permission.
Indian stock market rules specify that acquiring 25% or more shares in a locally listed company will result in a mandatory open offer whereby minority shareholders can choose to sell their ownership to the new investor at a predetermined price. According to data compiled by Bloomberg, Adani’s open offer price for Ambuja is 6% lower than Thursday’s closing price, while ACC’s offer price is 1% lower.
The takeover was approved last week by India’s Antitrust Authority.
In an incredibly fragmented and competitive sector, the acquisition of Holcim is expected to propel the Adani Group to become India’s second largest cement manufacturer almost immediately.
In May, Holcim and Adani Group reached an agreement to sell Holcim’s 63% stake in Ambuja Cement, a Mumbai-listed company. At the time, Adani Group said it would spend about $10.5 billion on buying shares and open consideration of the Ambuja and its subsidiaries’ bid.
As part of the agreement, Adani will acquire Holcim’s 4.5% direct investment in the company as well as Ambuja’s larger stake in ACC, a publicly traded cement producer.