M&A

M&A

Ambuja Cements buys Orient Cement for Rs.8,100-Cr

Business Line  

Mumbai- based Ambuja Cements , an Adani Group company, has acquired Delhi-based Orient Cement for INR 8,100 crore, including the mandatory open offer. The deal would be funded through internal accruals, with an open offer at INR 395 a share. The deal is expected to close in 3-4 months.Ambuja Cements will acquire 7.76 crore equity shares of Orient Cement representing 38% from the promoter group at INR 395.40 per share leading to a total investment of INR 3,185 crore at the same price.Orient Cement turnover was up last fiscal at INR 3,185 crore, against INR 2,938 crore logged in same period last year. The firm has 8.5 MTPA and can nearly double capacity by another 8.1 MTPA through brownfield expansion. It also owns a high quality limestone mine at Chittorgarh (Rajasthan) that can support an additional 6 MTPA cement capacity in North India.