The amalgamation eliminates structural duplication, reduces administrative costs and enables faster and more agile decision-making, Ambuja said in a stock exchange filing.
Earlier, Ambuja’s board had approved the merger of Sanghi Industries and Penna Industries with Ambuja.
“This consolidation represents a transformational step in building a globally competitive, integrated cement and building materials organisation. By bringing Ambuja Cements, ACC and Orient Cement under a single corporate structure, we are strengthening our ability to drive operational excellence, accelerate growth and deliver sustainable long-term value,” Karan Adani, Non-Executive Director – Ambuja Cements Ltd., Adani Group, said in a statement.
For every 100 equity shares of ACC with a face value of Rs 10 each, Ambuja will issue 328 equity shares with a face value of Rs. 2 each to eligible shareholders of ACC.
For every 100 equity shares of Orient Cement with a face value of Re 1 each, Ambuja Cements will issue 33 equity shares with a face value of Rs 2 each to eligible shareholders of Orient Cement.
Subject to requisite approvals, the transaction is expected to be completed over next one year .
The initiative aligns with Ambuja Cements’ strategic plan to increase cement production capacity from 107 million tonnes per annum (MTPA) to 155 MTPA by financial year 2028.
Post the merger, all the subsidiaries of ACC will become the subsidiary of Ambuja.
Promoter and promoter Group holding in Ambuja will be 60.94%, down from 67.65%, post approval of all ongoing and proposed schemes of merger of Sanghi, Penna, Orient and ACC.
