Ambuja Cements Board Approves Amalgamation Of ACC, Orient
For every 100 equity shares of Orient Cement with a face value of Re 1 apiece, Ambuja Cements will issue 33 equity shares with a face value of Rs 2 apiece to eligible shareholders of Orient Cement.
Ambuja Cements Ltd has received approval for two separate schemes of amalgamation from its board of directors to merge ACC Ltd and Orient Cement Ltd, establishing a single consolidated 'One Cement Platform'.
"The merger will create a pan-India cement powerhouse," the Adani Group company said in a release on Monday.
For every 100 equity shares of ACC with a face value of Rs 10 per share, Ambuja will issue 328 equity shares with a face value of Rs 2 apiece, to eligible shareholders of ACC, it said.
For every 100 equity shares of Orient Cement with a face value of Re 1 apiece, Ambuja Cements will issue 33 equity shares with a face value of Rs 2 apiece to eligible shareholders of Orient Cement.
It is subject to requisite approvals, and the transaction is expected to be completed over the next one year, the release added.
The merger will deliver operational synergistic benefits by optimising manufacturing and logistics networks, streamlining corporate structure, strengthening balance sheet and facilitating efficient capital allocation to support growth and bolster market leadership, it said.
The amalgamation will simplify and rationalise the network, branding and sales promotion related spends. This will help to optimise costs and improve margin. The merger will facilitate achieving targeted cost, margin expansion and growth metrics, according to the release.
"This consolidation represents a transformational step in building a globally competitive, integrated cement and building materials organisation," Karan Adani, non-executive director at Ambuja Cements, said. "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."
"This merger builds on our already proven track record to further position the business to drive efficiency and productivity. A robust and resilient balance sheet positions the unified strong entity to effectively support future growth initiatives," he said.
This consolidation is a major step for Adani Group’s cement business, creating an integrated and stronger entity with greater scale, efficiencies, and financial strength, according to the company.
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